Stumped by Spanish land grab

Daily Telegraph - Stumped by Spanish land grab
Our experts answer your questions about all aspects of buying, owning, and a house.

(Filed: 15/01/2005)

My wife and I are thinking of purchasing a property in Andalusia for part-time retirement. We have heard about a "land grab" law in Valencia and believe that there is a similar one in Andalusia. We have asked three different lawyers and have had three different answers – but I understand this is normal in Spain.

Please can you tell us if there is such a law in Andalusia and, if so, does it affect both rural and urban land? Also, what is the name of the law?

Lorna Vestey writes: 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. Some helpful Andalusian information is given by specialists in that region on www.casasalmeria.com.

The vast majority of British owners of Spanish properties are safe from any "land grab" risk and there is no reason why you should hesitate to buy anywhere in Spain, providing that you get proper legal advice first. Never rely on verbal assurances. As for any property purchase, use a solicitor who speaks your language, knows the area and local laws, and is independent.

The original article is at:

http://www.news.telegraph.co.uk/property/main.jhtml?xml=/property/2005/01/15/pclin15.xml&sSheet=/property/2005/01/15/ixpright28.html

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