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Buyers of property in the Valencian Autonomous Community should be aware that under the Valencian Government’s Ley Reguladora de la Actividad Urbanística of 1994, all land may be converted for property development, unless it has been deemed no urbanizable on historical, cultural or ecological grounds.

This means that even suelo rústico (rural land) may be re-designated as fit for property development if the town hall approves a developer’s plan for such change of use. Land classed as urbanizable is also, by definition, appropriate for development. It is therefore important, when buying property, to check future development plans at the town hall. This is also advisable even where land is already deemed to be urbano, since only by checking the status of the property can one become aware of the implications of likely future developments.

Prospective purchasers should take professional advice from a lawyer who can help with the necessary investigation.

Owners of property where a change of classification is approved should receive a notice from the town hall that they have 15 days in which to comment on the proposed new use. They may argue to preserve the status quo or in some way to protect their existing rights, but as matters now stand the probability is that the change of use will be permitted, perhaps with some modification. The town hall’s decision will be subject to approval by the Valencian Government.

If planning is approved, current owners will be obliged to contribute to the new development. This may involve having some of their land expropriated (against exchange or compensation which will depend on the existing classification of the land). Owners will also have to make a financial contribution for the construction of roads, drains, lighting and other urban development costs.

It is important that British citizens who become involved in such cases should observe the 15-day limit for appeal (alegaciones) and seek professional legal advice in negotiation with the developer (urbanizador).

Although the law has been referred to the Constitutional Court by the High Court in Valencia, it remains in force until any contrary or modifying judgement may be made by the Constitutional Court. The Court is not expected to make a decision until 2004.