The reason given for not imposing a moratorium (or the one given by Valencia anyway) is that they do not wish to encourage a rush to develop, but this is exactly what is happening right now and being encouraged by the Valencia Government. 

The Valencia Government is in the process of changing LRAU and replacing it with LUV (Ley Urbanistica Valencia).  A New law it may be but it is still riddled with problems that leave it more wide open to abuses than LRAU. A point Michael commented on when he said:

“The new replacement is frankly not good enough. It needs to be amended as it doesn't take on board the EP'S (European Parliament’s) concerns!”

More worryingly though was his reply that the EU, “Cannot ensure no further abuses. But can constantly monitor the situation and take action under EU law and treaty obligations (ECHR).”

Which begs the question what on earth can we do if the EU will not or cannot help us in our time of need? It would appear that the developers and the town halls have time on their side – for even if the EU can do anything - in Michael’s own words 

“Process of law is unfortunately extremely slow even when it comes to abuse of EU laws. Member States are given opportunity to bring forward changes so they are in compliance”

In other words it takes such a long time for the EU to do anything that the developments will have been long built and the building companies long abandoned before anything can be done – and then how do property owners seek redress? The answer is basically you are stuffed.

Is it all bad News?

Whilst the EU is currently investigating abuses of contract law – something that can be put right quicker – though not quickly, this will not help those already affected. 

However help is at hand in the form of a guardian angel. At the meeting on 20th September Hugh Robertson, a representative of the Law firm Irwin Mitchell, responsible for bringing large group action law suits, told everyone that his law firm had agreed to take on cases to the European Court Of Human Rights. 

Whilst the ECHR usually only accepts cases which have exhausted legal procedures in their own country, Hugh stated that because this is practically impossible in Spain, he is confident these cases will be accepted immediately. The hope is that enough base cases will be collected to provide a broad spectrum of abuses such that punitive damages may be obtained and it may be possible to get urgent orders to stop Land Grab activities whist the cases are being heard.

This is great news because if it is possible to call a halt to these abuses under the threat of such damages, then town halls may think twice about granting permission – especially if they may be liable to heavy fines – something which will hit the town halls hard and dare I say it the politicians personally. 

It is also worth noting that should an urbanisation be granted which hasn’t been the subject of correct EU contract procedures then the town hall will be held collectively responsible for any damages – and the Mayor who grants permission could be held personally liable, something which will hit his pocket. That may be enough for them to think twice about granting such an urbanisation. 

How do you ensure that you don’t become affected?

Very simply – don’t buy rustic land. Period! If you do after reading this then don’t cry if you subsequently fall foul of LRAU. And DO NOT believe any agent who tells you it will never happen in a particular area. It may never happen but no-one can ever guarantee this. Even the insurance companies will not give guarantees of title rights – something obtainable even in most 3rd world countries – but not in Valencia – this should speak volumes to you.

Is it worth investing in property in the Valencia Region?

The Valencia region, for all its woes with LRAU, is still a great region to live and/or own a holiday home. Whilst the abuses of LRAU have affected many and I am sure we all hope an end is nigh to this tragic law and its replacement, for everyone affected there are thousands more who have bought without any problems. The region is still undergoing property rises – albeit slower than before but still a respectable 5-7% per annum and more if you find the right area and property. Providing you invest your money wisely and only buy an urbanised property your money is a safe as houses. 

So my advice is very simple.

• Only buy a property built on Urbanised land – not Suelo Rustico, 
• If you are going to buy your own plot to build, make sure it is urbanisable has electricity and water and preferably telephone connection
• If you buy off plan from a developer – MAKE SURE the land is urbanisable. There are cases (Scams one might say) of developers in the Costa Del Sol who have sold and built houses on Suelo Rustico and the unsuspecting owners have paid their money, only to be told by the twon hall that their property is illegal and needs to be pulled down. 
• Always take legal advice and use an abogado – regardless of who tells you otherwise
• Never believe anyone that tells you an area will never be a problem – it may well be
• Check for yourself everything you are being told – and then double check with someone else

LRAU and its replacement LUV, are a terrible affront to human rights and the basic privileges bestowed on us as European citizens. Many people have been affected and these cases are now being highlighted in European parliament and the EU courts, so hopefully one day the Law will be replaced by a much fairer one. Until that time you can ensure you don’t fall foul by only buying urbanised land and using correct legal advice. 

In short keep your eyes and ears open and the property market in this region will – in my humble opinion – bring good financial rewards for a medium to long term investment. 

Special thanks go to Charles Svoboda and Jan Richards of the AUN website www.abusos-no.org/  who have been instrumental in bringing the abuses to the attention of the European Union.

Also to Michael Cashman, MEP for West Midlands, www.michaelcashmanmep.org.uk for providing valuable insight into the stance taken by Europe and for actually caring enough to want to do something about these terrible abuses. 

If you have been affected or suspect you might be then contact either the AUN or the law firm Irwin Mitchell, through their website www.irwinmitchell.com/valencia where they may be able to take on your case if selected. Speed is of the essence so please do not wait – get in touch now.

Vince Barnes is the owner of www.SpanishProperty-Direct.co.uk and also www.spanishproperty-direct.com – a website aimed at informing buyers about the process of buying in Spain and keeping up to date with news and regulations affecting the Spanish Property Market.    Visit this site for more information.