Expropriation Process and Rights

Expropriation

Expropriation is a singular public imperative affecting private property. It involves the forced transfer of ownership, sale, exchange, or temporary occupation of private property by reason of public utility or social interest, with monetary compensation or damages provided.

Constitutional Guarantees

• There must be a cause of public utility or social interest.
• Adequate financial consideration or compensation must be provided.
• The procedure must be performed according to the laws.

Subjects Involved in Expropriation

• Expropriating Administration: The State, province, or municipality.
• Beneficiaries: Those who benefit from the public utility or social interest project for which the property is acquired. This can be the administration itself (for public utility) or individuals (for social interest).
• The Expropriated: The registered owner of the property.

Expropriation Procedure

1. Declaration of Public Utility or Social Interest.
2. Agreement on the Need for Occupation.
3. Determining Fair Price:
   • Mutual Agreement: Price is agreed upon by both parties.
   • Contradictory Appraisal Process: Each owner notifies a statement of valuation, specifying the value. The administration accepts and pays, or denies the valuation and offers its own appraisal to the owner. The owner accepts or rejects the administration's offer. If rejected, the case is submitted to the Provincial Expropriation Jury.
4. Valuation Criteria: When the expropriated property cannot be valued directly, the owner is entitled to compensation based on the value of an analogous property (Value of Equivalence).
5. Fair Price Calculation: The fair price is the assessed value plus a 5% appreciation (likely for prompt payment or as a bonus).
6. Payment and Possession: Payment is generally required before the transfer of possession, except in specific cases:
   • Urgent Expropriation: Required uniquely for the realization of a specific work or purpose.
   • Military Requisition: During wars, civil emergencies, or epidemics.
   • Temporary Expropriation: Where damage is compensated later.

Right of Reversal

This is the right of the expropriated party to recover the property after returning the received compensation, if the intended public utility or social interest purpose is not carried out, the work is not completed, or there is a surplus of land not used for the purpose.

Expropriation of Urban Land

Specific considerations apply to urban land. The administration may expropriate for public endowments and infrastructure. Valuation may be fixed based on individual or joint assessment.

Assessment Criteria for Urban Land

• Undeveloped and Non-Urbanized Land: Value is determined by comparing similar properties.
• Urban Land: Value is based on market values.

Causes for Reversal in Urban Expropriation

• Abnormal use of the property.
• Failure to finish the work within 10 years.
• Failure to fulfill urban development duties.