Right of pre-emption of the State on the buildings built or completed before September 1st, 1947

Following a judicial debate conducted by CMS Pasquier-Ciulla & Marquet, the State’s highest civil jurisdiction, the Cour de Révision, issued a judgment on February 14, 2017 (publication in Official Journal on June 23, 2017) canceling, on the basis of the insufficient motivation, the decision of preemption by the State of a real estate property built or completed before 1 September 1947 subject to the provisions of Law no. 1.235 of 28th December 2000.

Law no. 1.235 of 28 December 2000 contains several detrimental provisions against property rights guaranteed by the Monegasque Constitution: CMS Pasquier Ciulla & Marquet has already successfully introduced several appeals in this respect.

If the recent decision is very satisfactory in terms of the result obtained, it would have been interesting for practitioners to see the Cour de Révision clearly assessing the scope of the right of pre-emption of the State found in Law No. 1.235.

One may understand the opportunity, even the urbanistic interest, that the large exercise of a right of pre-emption on all the buildings built or completed before September 1st, 1947 targeted by projects of real estate operations represents for the State, without limiting itself to those subject to the dispositions of Law No. 1235.

However, at a time when the State may need to expand its real estate property owning for housing or investment purposes, it would appear incongruous to justify the infringement of the right of ownership that preemption constitutes - in particular on properties not subject to Law No. 1.235 - by the sole purpose of general interest pursued by Law No 1.235 itself. Case merits to be followed ...