LRAU Valencian Land Grab

Spanish Property Buyers be Warned

If you are considering buying property within the Valencia province of Spain beware! After completing your purchase you could find yourself to be one of the owners who is forced to give part of your land back to the local authority and pay them considerable funds for the privilege of doing so.
Crazy it is, but you can't fight it. So don't buy unless your solicitor has confirmed that it cannot happen to you. Ask your legal advisers if there are any problems that may arise from the Valencia Region legalised Land Grab law. This is a law (the LRAU) passed in 1994 when the area involved was almost totally undeveloped. The concept was I believe to assist local authorities to improve the infrastructure of the area and build low cost houses. In recent years is has been used to seize land from property owners to aid development of new estates whilst creating great profit for both the local authorities and developers.

Acquiring land to be used to improve local amenities, water supply, sewage, etc. sounds commendable, however, unlike the English compulsory purchase scheme where you receive compensation (and can even appeal against the size of compensation) this Valencian law forces you, the property owner, to pay the developer for the privilege of what amounts to legally stealing your land.

I would point out that this is not an anti ex patriot law. It affects all nationalities including indigenous Spanish nationals. Many property owners have been forced into financial problems or even had to sell their property to pay for this land grab demand. We hear of figures as high as €90,000 plus being demanded. All areas of Valencia are affected, the local newspaper has reported cases in Marxqueria, Pedramala, Teulada, Villajoyosa etc but these are only the tip of the iceburg. Anywhere in the Valencian region, you can be a victim. One case reported in the CB Freebie makes it even more of a scam. They report on a Mr Berry whose property encompassed 2,800 square metres of land, 1,800 sq/metres was expropriated under this law yet by paying the developer £50,000 he was able to take it back. Sounds very iffy, only the developer gained. Where was the public benefit ?

The previous British ambassador, Mr Peter Tory, when attending a protest meeting in December in the Costa Blanca town of Javea stated that, "no one could be totally sure they were safe, the laws permitted, even encouraged unscrupulous urbanisers and certain town halls to extract windfall profits at no cost or risk to themselves, largely at the expense of property owners, and the property owners involved have virtually no defenses.".I understand that all EEC ambassadors and others outside the community have joined Mr Peter Tory in complaining to the Valencian and National Governments that the Law should be scrapped or radically amended. I hope they are also pressing for full compensation for those already harmed by this appalling non democratic law.

Advice! Don't buy in the region without first putting your legal advisers on the spot to ensure they can be held responsible if you buy on their advice and later find that this law affects you. Also, if you already happen to be one of the unfortunate land owners involved, be sure to contact the British Ambassador or the British Consul immediately.

British Consulate. Russell Thomson. Alicante. Tel 96 521 6022 Work hours 8.30 - 1.30
British Ambassador. Mr Stephen Wright, Madrid. Tel 91 700 8200

New National Law MostrarLey1125p1tn

This new National law may help the fight against the LRAU

It is worth reading this law carefully. It seems to be in conflict with the provisions , for example of the LRAU which require the "ceding"- some call it theft, of a substantial portion of land, with no compensation. Unless I misread it, this requires "market value" compensation, which may mean forcing the responsible authorities to actually utilize their expropriation authority, rather than bowing to pressures from developers or agents. There is a process by which "market value" is determined, not detailed in this law, requiring evaluations by qualified assessors (peritos) and an adjudication. Note this is a national law, which should override regional ones, such as the LRAU or its near equivalents in other regions. I do not know if this law has as yet been tested in court against the regional ones. There may be some jurisprudence in Madrid for example. This law was brought to our attention by the Secretary of the Cabinet of PM Aznar, Pita Cañas, recently. It was adopted on May 20 of this year.

February 7th 04. Land Grab update regarding the Appeal relating to the Petition to the European Parliament.

Jean Vallve, who sits on the Foreign Affairs and Human Rights Commitees (and who intends to be at the Petitions Session on 17th February) is from Cataluña but also covers parts of Valencia. Snr. Vallve has made it known that he will be happy to receive any appeals you wish to send.

So if you haven´t already written advising of your support for the Petition to the European Parliament No. 609/2003, please write now to Snr. Vallve or you may wish to copy and send him your original appeal. mailto:jvallve@europarl.eu.int

It would also help the ´cause´ if you could forward a copy of your support to the Petition to your own MEP.

Help line! I also suggest you contact Mr Jonathan Lambert, Secretary of the Legal Action Group, a non profit organisation set up to combat this problem. Telephone 96 578 6315 or Willem Kamphuis (Dutch or German) on 96 648 2504

If you have been considering moving to any area within the Valencia Region, don't give up. We live here and both the province and the people are delightful. I'd not live anywhere else. Just be very careful, your legal adviser should check all the legal points but many of the queries I outline are not legal points, they are common sense items you should query yourself.

Before considering a property, please read about the other property purchase problems which may affect the enjoyment of your new home. They may also have serious financial implications and I would urge you to seek appropriate professional advice and assurance before proceeding with a purchase.