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Jill
It is vital that your solicitor checks whether the land is Urban or Rural classification.
The LRAU Land Grab law is currenty being investigated by the European Parliment but there is a risk unless you fully research the area and any future plans that may exist for the area with the townhall.
Regards
Steve -
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On a similar vein to land grab, this is yet another worrying problem that seems to be surfacing, I recently saw this posted on another forum:
DEMONSTRATION OUTSIDE ESTEPONA TOWN HALL
Over fifty residents from the communities of Estepona Golf demonstrated outside Estepona Town Hall on Tuesday morning, 1st August. They were desperate for the Mayor to hear their grievances against the landowner of Estepona Golf, Mr Rory Leader and the Developers who have put extortionate infrastructure charges on their homes. Both Presidents of the communities Don Manuel Sánchez Rodriguez and Don Alfonso Gonzalez Careaga-Benito.gave interviews to the television cameras and local press before handing in a Petition into the Mayor’s Office.
Residents from as far as Nerja, San Roque and Puerto Romano, who face the same life changing costs, attended the rally. Mr Alec Maguire gave a rousing speech thanking them for coming and stated “United We Stand Divided We Fall”. Everyone cheered and then marched through the streets of Estepona with their placards
cfc.Kimo
NewbieJoined: 27 Jun 2006
Posts: 9
Location: Estepona
Posted: Sat Aug 05, 2006 5:49 pm Post subject: Extortionate Infrastructure Costs at Estepona Golf, Estepona
The problem is any undeveloped land near your property, so if you live in a rural home the chances are it could happen to you. The developers set up a commitee called a Junta de la Compensacion, I think that translates to *beep* Turpin Fan Club, then they put a charge on the deeds of your property. I believe mine is €28,500 to pay for their roads, lights, drains and anything else they might require on their new developments. At Estepona Golf we have all infrastructure in place and we are two registered communities. This is happening at Nerja, Puerto Romano and now I’ve just heard San Roque. IT MUST BE STOPPED.Back to top
Looks like we still have to be SOOOOOOOO careful when making semi/rural purchases.
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@Flynn wrote:
On a similar vein to land grab, this is yet another worrying problem that seems to be surfacing, I recently saw this posted on another forum:
DEMONSTRATION OUTSIDE ESTEPONA TOWN HALL
Over fifty residents from the communities of Estepona Golf demonstrated outside Estepona Town Hall on Tuesday morning, 1st August. They were desperate for the Mayor to hear their grievances against the landowner of Estepona Golf, Mr Rory Leader and the Developers who have put extortionate infrastructure charges on their homes. Both Presidents of the communities Don Manuel Sánchez Rodriguez and Don Alfonso Gonzalez Careaga-Benito.gave interviews to the television cameras and local press before handing in a Petition into the Mayor’s Office.
Residents from as far as Nerja, San Roque and Puerto Romano, who face the same life changing costs, attended the rally. Mr Alec Maguire gave a rousing speech thanking them for coming and stated “United We Stand Divided We Fall”. Everyone cheered and then marched through the streets of Estepona with their placards
cfc.Kimo
NewbieJoined: 27 Jun 2006
Posts: 9
Location: Estepona
Posted: Sat Aug 05, 2006 5:49 pm Post subject: Extortionate Infrastructure Costs at Estepona Golf, Estepona
The problem is any undeveloped land near your property, so if you live in a rural home the chances are it could happen to you. The developers set up a commitee called a Junta de la Compensacion, I think that translates to *beep* Turpin Fan Club, then they put a charge on the deeds of your property. I believe mine is €28,500 to pay for their roads, lights, drains and anything else they might require on their new developments. At Estepona Golf we have all infrastructure in place and we are two registered communities. This is happening at Nerja, Puerto Romano and now I’ve just heard San Roque. IT MUST BE STOPPED.Back to top
Looks like we still have to be SOOOOOOOO careful when making semi/rural purchases.
Hi Flynn, does this mean that if you buy an individual house in a rural area and are not part of a community as such, you could still be liable for payments on a new community being built near by? 🙄 Bopsy
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@Elsdonjill wrote:
Hi
Can you confirm whether there is still a risk of “land grab” in country areas? Is there anything that can be checked before you buy property which would stop this from happening
Thanks
Jill
😯
Hello.
In general I would say that the new valencian urban law and its regulations does not improve the situation for the vast majority of the cases. They only have little improvements as for longer timing of the procedure, limits to promoters fees and abuses, and information to owners. But you could not escape easily from paying promoters fees or otherwise your property to be partially grabbed.
The risk depends on the location of your plot of land and the legal statuts of the ground on the Plan.
Besides it is also important to consider wether your construction is still likely to be fined or even demolished (no compensation is given to those who have been building in protected areas or those who have been subject to administrative enquiry before 4 years time from completion of the building).
The new law and regulations provides an intricate system where in some circumstances you should not pay for new ammenities even if they renwew the obsolete or insuficient existing ones and provide some circunstances where you can adjourn the payment, however those circumstances are very difficult to occur in fact.
I have written two articles published at Levante-EMV newspaper about that (in spanish).
http://www.levante-emv.com/secciones/noticia.jsp?pIdNoticia=225393&pIdSeccion=5&pNumEjemplar=3261
http://www.levante-emv.com/secciones/noticia.jsp?pIdNoticia=227005&pIdSeccion=5&pNumEjemplar=3268
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Hi Jill
there is one very simple way to avoid land grab in every instance – do not buy Suelo Rustico – EVER! Only this classification of land can be grabbed.
As Miguel pointed out there is now a new law called LUV which is almost the same as LRAU except it is twice as large a document. There are some safeguards but it still falls way short of European Law and directives.
However consider this. Most proeprties on Suelo Rustico in the Valencia Region are oevr priced. The cost for the land is in the regionof 4 – 10 Euros per metre if it is productive land (ie you have Water to it) andif arable land (no water) then it is upto a euro.
You should check the escritura. (If the owner doesnt have a copy then take a note of the following
Tomo, Libro, Folio and finca registration)
Go to the cadastral or town hall and ask for a copia simple. (Costs 6 Euros or thereabouts.)
have a look at what it says. If it says suelo rustico – say goodbye, Also check to make sure that there is a house registered – this also makes a difference because under the current law if the house is not registered or is registered as a casita then you will have difficulty convincing the town hall to save your house from demolition. If it is registered you maybe n with a slim chance but will still lose land and pay fees if they urbanise
Some things to be aware of.
The new golf law gives the conselleria permission to over turn town hall ruling on golf courses (the Spanish Government want lots of them)
In Valencia there are some 91 golf courses in the conselleria for consideration
It used to be the costas that fell foul of this law – but now it is inland as land down here is running out.
For your own safety dont even consider land which is suelo rustico. But if you do then make sure that there is more than enough land that you can lose at least 70% of it and have enough left to keep your house – depends on the urbanisation but allow for at least 1000M to be safe – which means about 3500M in reality.
I have written an article last year for a local newspaper the Inland trader, Escape Artist and offshore magazine regarding LRAU – the principle is the same under LUV. so if you want to know more then drop me a line and I will send over a copy.
One final point make sure you get sound legal advice from an independent and preferably out of area solicitor.Best wishes
Vince
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Land is classified into just three categories.
Urban, urbanisable, and rustic.
If you want to sleep soundly, then simply buy a house on urban land. Valencia’s land grab laws cannot be applied to land already classified as urban.
How can you discover the classification of a given piece of land? Simply visit, or ask your lawyer to visit, the local council town planning office – known as ‘urbanismo‘. They will tell you for free in a matter of minutes.
Much land that is classified as urban still retains a rustic ambiance. But, it will always be more expensive than similarly sized plots of urbanisable or rustic land.
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What Rawlins have said is correct, the safest way to avoid land grab is to buy in “suelo urbano con urbanización consolidada”.
Then there only lack the usual checks at the “Registro de la Propiedad” for encumbrances, local tax offices for unpaid local taxes on the property and the ammenities and service suplpiers for unpaid bills or restrictions to access (e.g. water shares of a private water well). So you make sure that the sellers have paid all the debts that may attach the property .
The tricky thing about the nature of the ground is that in the previous law (LRAU) they were the ammenities or services that the particular ground had got what determined its nature (real status), but in the current law we come back to a plan given status which is something more “nominalistic”. This is another drawback of the new law.
Let me say that in some circunstances (which are rare) even “suelo urbano” can be subject to land grab, those are cases where the ammenities are so obsolete or the needs of the whole area makes for the zone necessary to reshape in order to make it liveable. But normally affects city centres or shanty towns. Those actions are calle Planes de Reforma Interior (PRI). There are also the procedures of section 187 of the LUV (compulsory purchase or expropiation for setting up the ammenities or infrastructures) and “contribuciones especiales” (special levies) where the local administration wants to rebuild some of the ammenities and consider that it would increase the value of your property they might try to impose those levies (but it is difficult for the government to justify that)
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