Didam ruling

Didam ruling learning piece: legal rules for real estate transactions by the government

Governments cannot simply sell or lease real estate to one party. The Didam learning piece – based on rulings from the Supreme Court – obliges governments to offer equal opportunities to all interested parties when dealing with scarce real estate. This has significant implications for real estate transactions between the government and market parties.

What does the Didam learning piece entail?

Based on the principle of equality and the general principles of proper governance, governments must:

• Provide all interested parties with an equal opportunity when selling or leasing real estate.
• Follow a public selection procedure, unless it is objectively established that there is only one serious candidate.
• Use criteria that are verifiable, objective, and reasonable.

These rules apply not only to sales or leases but also to leases, land exchanges, and scarce subsidies.

Legal consequences and risks

Governments are required to publicize their intention to execute a real estate transaction in a timely and public manner. If they fail to do so, or if they use unclear or unlawful selection criteria, they act contrary to the Didam learning piece. This can lead to lawsuits and damage claims from excluded candidates. Furthermore, the rules are applicable retroactively to before the first Didam ruling.

What can we do for you?

BG.legal supports both market parties and governments with legal issues regarding the Didam learning piece:

• For businesses or individuals: We assess whether you have been unfairly excluded from participation, evaluate the legality of selection criteria, and initiate legal proceedings for compensation or a public selection if necessary.
• For governments: We assist you in establishing a legally sound selection procedure or in correctly substantiating a claim of the ‘one candidate’ exception.

Do you want advice or assistance with a real estate transaction involving the government? Feel free to contact our specialists in Environment & Government.