The “Land Grab” law
The European Parliament Petitions Committee has ruled that the “LRAU”, commonly known as the Land Grab law, “constitutes a grave contravention of the most elemental of human rights.” This statement should be the beginning of the end of the problems it posed.
What is it?
It is a law, drawn up by the regional government of Valencia and applicable in that region only, which, in common with every other developing country in the world, allows for the change of classification of land from “rural” to “development”.
Why is it needed?
Everywhere, land sometimes has to be reclassified to allow for expansion of towns, new homes, roads etc. Changes need to be made, and sometimes individual preferences have to give way to the common good.
How is it a problem?
The law as drawn up by the Valencian Regional Government, which is an autonomous body, was written in such a way as to leave room for abuse. There is only a 15 day notice period, during which time an alternative plan for the land in question must be presented. Given that there are many absentee owners, and that very few people could possibly present an alternative plan in the time allowed, there is an opportunity for the unscrupulous developer to exploit the law.
Who is affected?
In reality, very few people indeed. Remember that the situation arises ONLY in relation to reclassification. If you buy an apartment, or any other property, on land which is already classified for development, then clearly that land will not ever move from rural to development land as that has already happened. In other words, almost everything which is already built is already classified accordingly.
How can I be sure?
Residencia Estates, like any other Interagency Network Member, will offer you an introduction to an independent lawyer. Ask him to check and confirm the classification of the land, and to check with the town hall as to future plans if it still classified as “rural”.
The vast majority of buyers in Valencia have never been, and never will be, affected by this law. If you are looking to buy in an area already developed then it won't affect you either. Be guided by your lawyer. This law has no effect in any other part of Spain .
As stated earlier, it now appears that the situation has changed and that European law will make the necessary amendments to prevent these abuses. A little care and knowledge will ensure that you never have to worry about it.
