The present "land grab" law is Ley Reguladora de la Actividad Urbanistica (LRAU). There is a new, improved version (LAU) not yet in force. However, political pressure exists in Spain and Brussels for real changes to deal with inherent inequities in such legislation.
While Valencian LRAU is particularly draconian, other regions, including Andalusia, do have their own versions. The law was intended both to ensure that developments had proper infrastructure (drains, road access, etc) and to enable suitable "rustica" rural land to be reclassified and developed.
Developers can get planning permission for property which they do not own, but LRAU can also allow compulsory purchase of property at a discounted price or the charging of the owner for "urbanization", usually infrastructure improvements which may or may not be desirable. This leaves plenty of scope for abuse.
If you buy property on land already classified as "urban", you need not fear this. Most developments are in "urbanizations". Forget "urban" meaning exclusively in or of a town or city, think more of approved development with proper roads and services. However, beware unauthorised "urbanizations" where properties have been built without planning permission. This has been done extensively from the mid-1970s. It may or may not be possible to get them legalised. This, and the amount of time and money required to do so, depends on the local council. While they are still not officially "urban", they may be vulnerable to demolition or "land grab". A British/ Valencian property specialists' website (www.rawlinsholden.com) contains clear and extensive information on LRAU.
In Andalusia, recent changes to planning laws mean that virtually all new houses must be built on land designated as "urban". Some developers are apparently not only desperately trying to sell illegal properties built on non-urban land in anticipation of permissions which they will now never obtain, but are also still building them and trying to get around the law by registering the properties as "agricultural" buildings (which can legally be built on "rustica" land). They tell the purchaser they can get the registration changed to a house after 10 years, but the law allowing this may well change in the interim.
Source:
www.telegraph.co.uk/property/main.jhtml?xml=/property/2005/01/15/pclin15.xml&sSheet=/property/2005/01/15/ixpright28.html
Lorna Vestey is a former partner of a blue-chip London estate agency.
