Preferential rights of municipalities

Preferential rights of municipalities

The preferred right on land as included in the Spatial Planning Act (and previously in the Municipal Preferred Rights Act (Wvg)) offers governments the opportunity to acquire strategic positions in the land market. The goal? To gain more control over spatial developments, combat speculation, and secure land positions for public purposes. 

What does the preferred right entail? 

When a municipality establishes a preferred right on a parcel, the owner is obligated to first offer the land to the municipality in the event of a proposed sale. Only when the municipality does not accept the offer may the owner sell the land to third parties. 

This instrument offers municipalities the chance to: 

• Manage area development; 
• Limit speculation and price inflation; 
• Acquire land for housing, infrastructure, or nature development. 

For landowners, this means that their freedom to negotiate the sale is temporarily restricted. 

Our expertise 

Our specialists advise both municipalities and other authorities as well as landowners on all aspects of the preferred right, including:

• The establishment and publication of a preferred right; 
• Assessment of the legality of designation decisions; 
• The legal position of the owner in the event of sale or objection; 
• Negotiation processes regarding acquisition or value; 
• Conducting objection and appeal procedures. 

With our extensive experience in real estate law and public law, we ensure a legally sustainable and strategically smart approach. 

Do you, as a government, have plans to establish a preferred right? Or are you, as an owner, faced with a preferred right and want to know your options?