How could a property I buy be affected by Valencia’s land grab law?

Unless you are buying a villa in rural land (and you can see this in the “Nota Simple”) you don’t have to worry. In my particular case, unless specifically instructed I do no select properties that are illegally built in rural land.

What is the Valencialand grab law?

The Valencian local government passed a law to speed urban development in 1994 called ‘Ley Reguladora de la Actividad Urbanistica’ (LRAU) set out to ensure developments were built with sufficient public services and facilities including sanitation, green spaces, roads, etc.

Why Spanish developers love the Valencia land grab law?

The law enables property developers to ask that land be reclassified from rural to urban without the need of the land owners' permission. Basically property developers can look for patches of rural land and propose the local council to build a condominium, golf resort or whatever residential complex with no opposition from small landowners. Developers typically buy rural or derelict land at a price circa 7 Euros per sq metre that when urbanised reaches prices in the region of 60 Euros per sq metre. The profits are quite substantial and all developers like “grabbing” and reclassifying land.

Why do small British land owners hate the Valencia land grab law?

Many brits have bough unawares “non-existing” houses in rural land (which to us Spaniards is quite amusing). Only rural land can be “grabbed”, and you can’t build on rural land! Therefore to have a house built on rural land is illegal. Most of those houses are grotesque and built below standard by peasant owners or low skilled workers seeking a “weekend” home outside the city to cook their paellas. These houses were of course built with no planning permission nor qualified personnel.Furthermore, owners often find it difficult to get basic utilities such as drinkable water, sewage sanitation, or access to the internet. In fact when you buy one of these houses you are in fact buying only the land, the notary will warn you that there is no house (even if you see one). And when a developer buys land to urbanise it he only pays the market price of the rural land not of the illegal house that is sitting on it.Leaving affected owners with two options:

• sell (at a much lower price than expected)
• go with the flow and pay the urbanisation costs and keep at least some valuable urban land in exchange

What can I do if I have a house in rural land in Valencia?

Ok, I won’t tell you off again for buying a “non-existing” house in rural land, I get it you had enough with my last paragraph.

First of all let’s see if your property is affected by any of the numerous “land grab” projects around the area; this typically involves:

• A visit to the “ Urbanismo” section of your local Town Hall and ask them what is going on in your area.

Yes, it seems simple, but you will probably find they are not very cooperative with your case and the information you are given is either very technical or misleading!.
Remember first to get ready all the documents and legal papers regarding your property:

• “Escritura” de propiedad and “ Declaración de Obra Nueva” if applicable
• The recent IBI and Garbage ( Basura) tax payments receipt
• Cédula de habitabilidad of your property
• Mortgage papers from bank ( the “tasación” papers could be useful, with its current market value).
• Topographic maps of your property and of al the area it covers.
• Nota simple from the you town land registry
• Cédula Urbanística

With this you can basically ask if your property has been affected by any Plan Parcial.

Can I take advantage of the Valencialand grab law myself?

If you own a considerable amount of rural land and wish to develop it into a condominium and make some money this is what you have to do:

Get an architect to draft a town planning project and put forward the proposal to your local council. The advantage local developers have over small property owners is the lack of information owners have on what is going on regarding their property. Having a good architect that fully understands the ins and outs of the land grab law (LRAU) is like having a top notch lawyer defending you against a plaintiff in a tough court case.

Why is the Valencialand grab law so controversial?

The controversy arises when some owners do not want to sell (and therefore reject the amount of money offered). In that case developers can either go on to compulsory purchase or else force the owner his corresponding share of the urbanisation costs involved (sewage network, road paving, water supply, etc).

What areas are affected by the Valencia land grab law?

Areas affected are widespread but are most commonly found along costa blanca’s coast where there is a shortage of land and values are at their highest. Other areas of Spain are thinking of copying Valencia’s initiative as a way of promoting development for local governments short of cash.