Expropriation of your home: what compensation do you get and how is it calculated?

Expropriation of your home: what compensation do you get and how is it calculated?

If your home is expropriated, you are entitled to compensation that covers the full loss, and in principle you receive it before you hand over the property. This is laid down in Article 16 of the Belgian Constitution. In practice, that compensation is made up of more than just the market value of your house. Below you can read what it consists of, how the procedure works and how to avoid being paid too little.

When can the government expropriate your home?

A public authority may only expropriate private property for a purpose in the public interest. Think of building or widening a road, a cycle highway, a water management project, a school or an urban renewal project. Some intermunicipal companies and transport companies can also expropriate, if the law gives them that power.

In Flanders, the procedure is governed by the Flemish Expropriation Decree of 24 February 2017. Since 1 January 2018 it applies to expropriations by Flemish authorities, such as the provinces, the municipalities and the Flemish administration. Wallonia and the Brussels-Capital Region have their own rules. The broad outlines are similar, but deadlines and procedural steps differ. If you live there, have someone check which rules apply to your case.

An expropriation rarely comes out of nowhere. It is usually preceded by a spatial plan or a project decision. If you follow that up in time, you have more room to respond.

How does an expropriation procedure work in Flanders?

The Flemish procedure consists of an administrative phase and, if you and the authority cannot agree, a judicial phase.

• Provisional expropriation decision. The authority sets out which plots it needs and why. As the owner, you are notified personally.
• Public inquiry. During this period you can lodge an objection, for example against the need for the expropriation or against its scope. This is also where you can ask to carry out the project yourself (self-realisation), if you are able to and the project allows it.
• Final expropriation decision. The authority deals with the objections and takes a final decision. An appeal against it can be lodged with the Council for Permit Disputes (Raad voor Vergunningsbetwistingen).
• Amicable negotiation. The authority must first try to acquire your property by agreement, based on a valuation report. Most cases end here, with a deed signed at the notary or an administrative deed.
• Judicial phase. If no agreement is reached, the authority goes to court. The judge reviews the expropriation and sets the compensation, and may appoint a court expert to do so.

If the project is not carried out later on, the decree provides, under certain conditions, a right to reclaim the property. So keep all the documents in your file, even after the sale.

What does expropriation compensation consist of?

The compensation must put you in the same financial position as before the expropriation. That is why it consists of several parts.

The main compensation is the value of your property on the open market: what an ordinary buyer would pay for it. The valuer looks at comparable sales in the area, the location, the floor area, the condition of the home and its energy performance. One important rule: any drop in value caused by the project itself may not be taken into account. If your house has been in a zone earmarked for a new road for years, it is valued as if those plans did not exist.

Additional compensation covers the other damage you suffer. The most important is the reinvestment compensation: it covers the costs of buying a comparable home, such as registration duties and notary fees. Moving costs, fit-out costs you lose and, for a business, losses from business interruption may also qualify. If only part of your plot is expropriated, you can also claim compensation for the loss in value of what remains, for example if your garden gets smaller or the access changes.

Tenants have rights too. If you rent out the property, your tenant can claim separate compensation for the loss of their lease.

How do you make sure you are not paid too little?

The authority's valuation report is a starting point, not a final figure. You may contest it and make a counter-offer. You are in the strongest position with your own independent valuation.

• Request the full valuation report and check the comparables. Are the sales used really comparable in terms of location, size and condition?
• Have your home valued yourself by a licensed estate agent or property expert. A free online valuation gives you a first idea, but an on-site valuation is needed to rebut the authority's report on its merits.
• Make a list of all additional damage: the move, new fit-out, temporary housing, losing part of your garden.
• If the gap is large, get help from a lawyer who specialises in expropriation.

A local estate agent often knows the recent sales in your street better than a valuer covering the whole province. Through ImmoMakelaarVergelijker.be you can compare up to 3 local estate agents, free of charge and without obligation. That way you can ask for a well-founded second opinion before you sign an amicable agreement.

Taxes and buying a new home

Whether you pay tax on the compensation depends on your situation. For a private individual's own home, a capital gain is usually not taxed, but for a second home, a building plot or a commercial property it can be different. Check this with your accountant or with the FPS Finance before you sign.

If you have to move, start looking early. The reinvestment compensation helps you cover the purchase costs, but the compensation is only paid out after the deed or the judgment. So plan the timing of your new purchase together with your notary. If you also want to sell another home in the same period, compare estate agents in your area so that both files line up.

An expropriation is not the same as a right of pre-emption, where the government may buy first in an ordinary sale. You can read more about that in our article what is the right of pre-emption in real estate.

Frequently asked questions

Do I get the market value of my home in an expropriation?

Yes, the main compensation is the value on the open market, without taking into account the drop in value caused by the planned project. On top of that come additional payments, such as the reinvestment compensation for the costs of a new purchase.

Can I refuse to have my home expropriated?

You can lodge an objection during the public inquiry and appeal against the final decision. If the expropriation is legally valid, you cannot stop it, but you can contest the amount of compensation in court.

Do I have to accept the authority's first offer?

No. The offer is based on a valuation report that you may contest. With your own valuation by an estate agent or property expert, you can make a well-founded counter-offer.

Who pays the costs of the procedure?

The costs of the deed and the procedure are in principle borne by the expropriating authority. You usually pay the costs of your own valuer or lawyer yourself, unless the court decides otherwise.

Final thoughts

An expropriation feels like something that happens to you, but you have more influence than you think. Follow the file from the public inquiry onwards, read the valuation report critically and have your home valued yourself before you sign. Owners who negotiate with solid arguments usually end up closer to the real value of their property.