Athanasios Gromitsaris, Expropriations, Takings - ius-publicum

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When a binding land-use places obligations in respect of planted areas and pro-
vided for the preservation of trees, shrubs, and other greenery and water bodies, or desig-
nates the planting of trees, shrubs or greenery, the owner may claim compensation as long
as a significant drop in the value of the property ensues or the expenditures incurred go be-
yond the level required for the proper management of the property (section 41 II Federal
Building Code).
Another example is the right to compensation of landowners for the downzoning
of an already existing permitted private-type land use in accordance with the conditions of
section 42 Federal Building Code. When an amended or new legally binding land-use plan
withdraws a private land use or downgrades the permitted lucrative private type use of a
land plot to a less profitable private-use category (below its existing use), the municipality
amending the old or approving the new binding land-use plan is liable for compensation.
However, this right to claim compensation has a time limit. Landowners have the right to
develop their properties in accordance with the binding land-use plan´s designations for a
seven-year period following the date when the plan came into effect, and only withdrawal
or change of a permitted use within a period of seven years of its being permitted can trig-
ger compensation. The level of compensation reflects the difference between the value of
the property arising out of its permitted use and the value which emerges subsequent to the
withdrawal or change of use. After the seven year period the land-use category of a plot
may be changed without compensation under the conditions that there is no need of phas-
ing-out the previous use, that the new private-use category is less lucrative than the previ-
ously permitted land-use, and that the latter is in accordance with the existing type of de-
velopment. Making no use of existing development rights within seven years means taking
the risk that permitted land-uses might be altered without any compensation. However, any
town-planning decisions modifying or withdrawing previously permitted land uses cannot
be based on the mere elapse of the seven-year period, rather, they must be justified by long-
term town-planning principles and must also be free of balancing errors in order for them
not to be challengeable on substantive grounds. Municipalities must compensate property
owners even on expiration of the seven year-term when, as a result of the withdrawal or
change of the permitted land-use, continuation of this use or any other possible commercial
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