Athanasios Gromitsaris, Expropriations, Takings - ius-publicum

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Limitations on land property imposed by lawful planning decisions can trigger a
liability for compensation pursuant to sections 39 to 44 of the Federal Building Code. Prop-
erty owners are compensated for the effects of lawful interferences with their property
rights. 64 Pursuant to Section 42.1 of the Federal Building Code, where the use permitted for
a plot is withdrawn or changed and this triggers a not insignificant drop in the value of the
property, the owner may demand financial compensation of an appropriate amount under
the conditions laid down in the paragraphs 2 to 5 of this Section. Further, when land prop-
erty that was initially zoned by a binding land use plan for a profitable private use is later
specified for a public land use or for a less worthy private land use, landowners are affected
in their property rights. The owner is to be compensated to the extent that property loss is
suffered in the cases where a legally binding land-use plan comprising one or more of the
fourteen public land-use classes listed in Section 40.1 of the Federal Building Code affects
an existing private-type land use of the property. No liability for compensation is triggered
when the designations are in the interest of the owner or for the purpose of complying with
a legal obligation resting with the owner. Where the conditions contained in Section 40 are
found, pursuant to 43.3 sentence 1 of the Federal Building Code, compensation is to be paid
in accordance with Section 40. This section does not only include compensation in money
but also the possibility of compensation by transference of title, i.e. the right of the owner
to be expropriated.
Urban redevelopment law (sections 136-164b of the Federal Building Code) has an
important impact on land property. Redevelopment measures serve the public interest by
formally denominating the redevelopment area and specifying the general program of reno-
vation to buildings and neighbourhoods (section 141), and by taking implementation meas-
ures that comprise the acquisition of land, the resettlement of residents and relocation of
businesses, the improvement of the outward appearance and the replacement of buildings.
All these measures are subject to written approval by the municipality. Owners of proper-
64 Gerd Schmidt-Eichstaedt, The law on liability for reduced property values caused by planning decisions in the
Federal Republic of Germany, Washington University Global Studies Law Review, Vol. 6, 2007, 75-101.
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