Real estate: Loss resulting from government planning decisions - Are you entitled to compensation?

Publication date 8 December 2016

Loss resulting from government planning decisions is damage you suffer if a plot loses value due to a zoning plan, or if its use is limited. This may occur, for instance, if the municipality you live in changes the zoning plan to create a new motorway along your plot and, as a result, your home will decrease in value. What to do in such case?

Compensation for loss resulting from government planning decision

In case you have suffered loss from government planning decisions, you can, in writing, request compensation of this loss. This request must be submitted to the municipal executive. For the request for compensation you must pay charges to the municipality. If the municipal executive agrees with your having suffered loss from government planning decisions, you will receive compensation. Your loss will not be compensated completely: 2% of the assessed value of the plot will be for your own risk.

When are you entitled to compensation of loss resulting from government planning decisions?

To qualify for compensation of loss resulting from government planning decisions, you will have to meet a number of conditions, namely:

The decrease in value of the plot is the result of a change in the planning situation (by changes of a zoning plan or a new planning decision).
The change of the planning situation which is unfavourable to you could not have been predicted when you bought the ground or building. If the change could have been predicted, it can be assumed that you included it in the purchasing decision (and maybe paid a lower price) and thus accepted potential damage.
The request for compensation of loss resulting from government planning decisions was submitted within a period of five years after the decision causing your loss had definitely been established.

More information

Would you like to get more information about loss resulting from government planning decisions? Do you need help regarding a request for compensation? We will gladly assist you! Expenses for legal assistance can be (partly) reimbursed if the compensation is granted. You can also contact us with all other questions regarding spatial planning:

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