Property Expropriation: Rights, Compensation, and Legal Process
Understanding Property Expropriation
Expropriation is a legal process where a public entity acquires private property for public use, often against the owner’s will, with compensation. This document clarifies the effects, claims, compensation methods, and legal aspects of expropriation.
Key Effects of Expropriation
- Property Unmarketability: Once an act of expropriation is initiated, the affected property becomes unmarketable and cannot be subject to any further acts or contracts.
- Right to Claim: The property owner gains the entitlement to challenge the act of expropriation or the proposed compensation amount.
The expropriation process is typically initiated by a supreme decree or ruling issued by the President of the Republic or the public entity responsible for the acquisition. The official act of expropriation is published in the Official Journal 90 days after its issuance.
Expropriation vs. Confiscation: Key Differences
While related, confiscation differs from expropriation. Confiscation is the act of seizing or depriving someone of possessions or property without compensation, with the assets passing directly to the public purse. Expropriation, conversely, always involves compensation.
Who is Subject to Expropriation?
The expropriated party is the individual or entity whose ownership of property is deprived by the state or a public entity through the act of expropriation.
Challenging an Expropriation Act
An expropriated party may file claims to challenge the expropriation or its terms. These claims can include:
- Rescission of Expropriation: Seeking to annul the expropriation on grounds of its inappropriateness due to the property’s inexpropriability or the lack of legal authorization.
- Total Expropriation Claim: Requesting the total expropriation of the property if only a partial expropriation was initially decreed.
- Partial Expropriation Claim: If the act provides for the expropriation of one portion, claiming the expropriation of another portion of the partially affected property.
- Modification of Terms: Seeking to modify the act of expropriation if it does not comply with the law, particularly regarding the form and terms of compensation payment.
Grounds for Inadmissibility or Discontinuance
An act of expropriation may be declared inadmissible or discontinued by a judicial sentence or through revocation under specific circumstances:
- If no expropriation decree is published within 90 days of its issuance.
- If material possession of the property is not sought within 60 days.
- If the act does not impose additional expropriation or amend the original act within 90 days of the right to expropriation being declared.
Determining Expropriation Compensation
The final compensation amount for expropriated property can be determined through several methods:
Conventional Compensation Agreements
Compensation can be established by mutual agreement between the expropriating entity and the expropriated party. This agreement covers both the compensation amount and the payment schedule.
Expert Commission Determination
An expert commission may establish the compensation amount. This determination becomes final if no party claims against it.
Judicial Compensation Determination
If the provisional compensation amount is disputed by either the expropriating entity or the expropriated party, the final determination will be made by a court.
Filing a Claim Against Expropriation
Claims against the act of expropriation must be filed within 30 days of notification of the expropriation. These claims may pertain to:
- The amount of compensation.
- Rescinding the expropriation due to its inappropriateness, based on the property’s inexpropriability or lack of legal authorization.
- Requesting total expropriation of the property, whether wholly or partially expropriated.
- Requesting the expropriation of another portion of the partially affected property.
- Modifying the act of expropriation if it does not comply with the law, particularly concerning the form and terms of compensation payment.
Transfer of Expropriated Property Ownership
Once the compensation is paid to the expropriated party, or consigned to the order of the Tribunal, whether it’s the total agreed amount or a provisional share in cash, the ownership (domain) of the expropriated property transfers to the expropriating entity.
Expropriated Property as a National Asset
Property may be expropriated to become a national asset for public use if its intended use benefits all citizens of the nation.
Compensation for Property Damage
Compensation provided during expropriation covers the actual property damage caused to the expropriated party.
Legal Recourse and Withdrawal of Expropriation
Challenging the Appropriation Act
The expropriated party has the right to challenge the act of expropriation before a judge of letters (a civil court judge).
Withdrawal of the Expropriation Process
The expropriating entity may withdraw from the expropriation process by issuing a new act. This withdrawal is permissible up to the thirtieth day after the date of the final judicial sentence that sets the final amount of compensation.