L.R.A.U Law – Ley Regulatin de Actividades Urbanistica
(known as the “Land Grab Law”)
 
 
 
 
 
 
 
 

 

Valencian Region Land Law 1st January 2004

Widespread publicity in the British media over recent months in respect of the application of the above law has caused a degree of unnecessary apprehension for potential purchasers of Spanish properties.

It is stressed that a normal purchase (explained later) will not and cannot be affected by this law and this will be so certified by your Abagado – Spanish lawyer and undoubtedly the negative media reports have been exaggerated, sensationalised without reason or recourse to the facts and in many instances extremely vitriolic in content.

The law does exist, has been in existence for over 8 years and is seen to be most unfair and inequitable in its application, possibility in breach of human rights and it is currently being challenged through the Courts, possibly to the Higher Courts and if necessary to the European Court of Human Rights.

Only an absolute minority of owners could possibly be affected and new owners will not be affected unless legal advice is not taken or is ignored.

The law relates to a specific development known as a Plan Parcial which are in essence located in open rural country areas such as Pedramala in Benissa which has been the main subject of the recent extensive publicity. Approximately 60 owners are involved in the Pedramala problem and they are being asked to pay what they consider to be unfair and excessive contributions towards the implementation of the infrastructure to the proposed Plan Parcial development.

As mentioned Plan Parcial developments can be applied in restricted areas of open rural country land and in the Valencian region general plan this land is basically subject to two classifications, namely Urbanisable Land or Urbana Land.

a) Urbanisable land
is so designated to provide the possibility of future development under the title of a Plan Parcial. The property and land owners in such an area are entitled to form what could be described as a consortium and by agreement they could prepare a development plan and submit their proposals to the local Town Hall and they, in essence, would become partners in the proposed development. In reality this is not likely to happen firstly on the grounds of costs but mainly due to the fact the majority of the property owners have chosen to live in such an environment, a tranquil rural location, accepting in many instances the lack of infrastructure and the lack of conventional services and to be engulfed within a development would be deemed to be undesirable. Although the owners have the first option to act a third party can become involved, normally in the form of a consortium of builders/promoters who have the right to prepare and submit a plan parcial development plan and if approved by the Town Hall, the existing owners are obligated under the LRAU law to contribute towards the costs of the infrastructure and, of course, this is when problems arise in that the owners are being asked to pay towards something they do not want. The owners still have the right to submit an alternative proposal but on a costs basis this is not normally feasible.

It should be mentioned that none, or very few, of the affected owners have paid the claimed contribution, nor will they do so until the protests have been duly concluded through the Courts and it has been announced that, due to pressure from the European Commission, the law will be rescinded or drastically amended.

b) Urbana Land
The majority of land located in rural country locations is designated as urban land, green zones and agricultural land on which building is generally not allowed other than the possibility of building a single dwelling on a parcel of land to a minimum of 10.000 m2. As mentioned previously this designation is categorised in the Valencian region general plan, not local plans, and cannot be overridden by the local authority thereby ensuring the owners in such locations are protected.

This is a situation that has not been explained in the media reporting but this will undoubtedly be redressed and to alleviate concerns potential purchasers can be assured by a lawyer certification. It should also be appreciated that the owners currently affected by this law are not wholly British but all nationalities, the majority being Spanish.

Perhaps in some instances the owners themselves have a degree of responsibility for the problems they are now encountering due to a disregard for normal conveyancing practices.

Many purchasers, British and other nationalities, purchase properties without utilising the services of a lawyer, which would not be contemplated back in their home countries. The selling agent will offer to carry out the works of conveyance free of charge and many purchasers accept this option and on a new build project they often allow the builder/promoter to execute the legal works. It should be very obvious that this cannot be an ideal situation in that it is virtually impossible for a single person or party to act fairly and protect the interests of both the buyer and seller.

By utilising the services of a lawyer the searches would reveal that the land is classified as urbanable land and as such could possibly be affected by a future plan parcial development and as such could be subject to the LRAU law.

Having been made aware of the situation it would then be the purchasers decision to withdraw or proceed and in so doing accept the possible future implication.

It would be interesting to discover how many of the owners now affected actually purchased without utilising a lawyer or how many, being aware of the land classification, chose to ignore the implications.

As mentioned the normal type of purchaser will not be affected by this law and purchasers should ensure that this is confirmed by their lawyer and as an indication none of the following could be affected by the law.

a) New developments
Builders/promoters are obliged to provide a complete infrastructure of road works and services and this is included in the plot and build price package.

b) Existing developments
Areas already urbanised with the road works and services in place and they are all included in the purchase price of property or the land and new build project.

c) Infill sights
Same comments as indicated in “b”.

d) Re-sales
Located in all existing urbanised areas no possible liability but care should be taken if located in a rural country location.

e) Apartments etc.
The complex infrastructure for this developments whether old or new is in place and cannot be affected by the law.

It will be evident from the foregoing that this law only affects an isolation minority of owners and that no problem will be encountered by new purchasers in the average and normal type of purchase, although care should be taken with any purchase in isolated rural country locations in which the lawyers’ advice should be obtained and fully regarded and we stress that the services of a Spanish lawyer should be utilised for all property or land purchases.


P.S. At a local meeting earlier this year it was announced that it was the various local authorities would not enact the rights of this law unless the affected owners signified their agreement in writing. This would place an entirely new complexion on the situation but as yet it can only be regarded as a verbal assurance of intent not yet on the statute book.

Disclaimer:
This report has been prepared in accordance with information obtained from reputable sources and from the writer’s attendances at various meetings but it is stressed that the report and the comments therein are to be regarded as a guide and legal advice should be sought prior to enacting upon this guide.


"The comments in the foregoing report were prepared almost 4 years ago in January 2004 and since then the situation has progressed with the involvement of pressure groups and the European Court of Justice and the EU. We append a current report as at October 2007 which specifically mentions inland rural and semi rural land and it emphasises our advice for the need to take comprehensive professional advice, preferably from a lawyer before contemplating a purchase in these types of areas and we take the situation one step further by recommending that lawyers should be instructed and appointed by all purchasers of a Spanish property, akin to the uk system."

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