A recent case in the French courts highlights the risk of buying building land without first ensuring that the planning consent is beyond recall.

A couple who purchased building land in the commune of Montferrier-Sur-Lez, in the Languedoc-Roussillon region, discovered that, after the purchase was completed, the planning permission was later withdrawn.

The couple had paid the not inconsiderable price of €173,000 for the land.

Through the auspices of a notaire they had signed a compromis de vente for the land in Oct 2001. The contract clearly stipulated that completion was subject to planning permission (permis de construire) being obtained.

Although there was some delay in getting consent, in January 2002 the planning certificate was duly obtained.

As a result, sale completion took place a month later in February 2002.

However, this was prior to expiry of the period allowed for judicial review of the planning consent.

The window for the public to make an application for a court to determine the legality of a planning decision is two months (longer for sensitive environmental uses) prior to the notice of planning consent being displayed on the site.

The local council and préfet also have similar a right of challenge, if, for instance, either consider it was granted illegally.

Unfortunately for the couple, the consent was challenged under judicial review, when it was annulled by the court.

It seems that the area zoned for development was particularly contested by a local environment group, as it was located in an area liable to flooding, and in proximity to an historic monument.

As a result of the annulment, the couple brought an action in the French courts for damages against the notaire who dealt with sale completion.

They argued that the notaire had failed to warn them of the risks of completing the sale prior to expiry of the délai de recours, the two month period allowed for judicial review.

Initially, they lost the case in the lower courts on the grounds that a clause mentioning the délai de recours had been included in the initial sale contract. So the couple were aware of it.

This was not a view finally accepted by the Cour de Cassasion, who judged that the notaire was legally obliged to take the initiative and provide advice to their clients on the risks of premature sale completion.

As a result, the notaire was ordered to pay damages of €3000 to the couple.

However, the court did not annul the sale purchase itself, as it was perfectly valid, and the level of damages awarded in the case was remarkably small given the price they paid for the land. It was really no more than a rap on the knuckles for the notaire.

It can only be assumed that the reason for the low damages was that the potential for judicial review of the decision had been mentioned in the sale contract and that, therefore, the buyers bore some responsibility for not proceeding with greater caution.