Did you know that if you purchase a property that is out of zoning, you will have limitations on its use or for carrying out works? Legal certainty when buying a property is essential, and in addition to requesting information from the Land Registry, it is important to seek urban planning information and consider the Land Law.
If the property is out of zoning (for example, it is located in a residential building constructed on land designated for school facilities according to the urban plan), the property value may be lower, its use may not be changed, or consolidation works may not be permitted.
The Land Law in Spain is one of the most relevant regulations within the property and urban planning sector. This law establishes the foundations of how land use, development, and protection are regulated. In this article, we explain the key aspects of the law to understand its impact on the real estate sector and on the purchase and sale of properties.
What is the Land Law?
The Land Law is the regulation that governs the use, classification, and development of land in Spain. It has evolved over the years since its first version in 1956, and its main objectives are:
– Ensuring sustainable urban development. It is important that cities grow in a coherent manner while meeting people’s needs.
– Preventing speculation related to land use. For instance, the aim is to avoid situations where an investor buys non-developable land on the outskirts of a city with the expectation that, in the future, the area will be revalued as developable land. This would allow the land to be sold at a much higher price without developing it.
– Protecting the environment. It is essential to obtain an environmental impact assessment of urban plans.
In other words, the Land Law establishes what can be built, where, and under what requirements.
What types of land are there?
One of the pillars of the Land Law is the classification of types of land in Spain. The classification of land plays a key role, as it affects the uses and limitations of each plot. Three types are distinguished:
1. Urban land. This is land that already has basic services and can be built upon. In other words, it has the basic infrastructure for water supply, electricity, public lighting, and sanitation. This type of land is suitable for constructing housing, commercial premises, or public buildings, among others.
2. Developable land. This is land that is not yet developed but may be urbanised in the future. For developable land to be developed, it must have an urban plan approved by the competent authorities.
3. Non-developable land. This land is protected due to its environmental, historical, or landscape value, so it cannot be urbanised. On this type of land, only certain types of constructions are permitted, such as agricultural or forestry facilities that do not affect the natural environment.
The classification we have reviewed is important if you want to buy land or build a property on land you already own, as the type of land determines what you can do and under what conditions.
What does it mean for a property to be out of zoning?
We have often heard of a property or building being “out of zoning”, but what does this mean?
This term refers to properties that, although they were built some time ago, no longer comply with the current urban planning regulations. In other words, they are buildings that, due to changes in regulations, are now outdated or no longer permitted.
This situation has various consequences affecting different aspects:
– The property’s value.
– The works that can be carried out. In an out-of-zoning property, only maintenance work to ensure the building’s safety is permitted.
– The transfer of the property. The buyer must be informed of the property’s actual status to purchase with full knowledge.
The most important thing to know is that if a property is out of zoning, it does not mean it is in an irregular situation; rather, the current regulations differ from those in effect when it was built, and the property no longer conforms to them.
What does the Land Law reform consist of?
There has been talk of a reform of the Land Law for some time, but it has been delayed due to a lack of support. This reform would introduce changes to address some basic issues that arise in Spanish cities. Some key points of this reform include:
– Avoiding the suspension of municipal urban planning plans due to non-substantial formal defects. Until now, plans were suspended in these cases due to a formal defect; however, with the reform, suspension would be avoided, and the error could be corrected.
– Positive silence in some cases. There are various urban planning actions where, until now, administrative silence has been negative; with the reform, it will be positive, meaning that if the administration says nothing, the interested party may proceed with the relevant action.
– Limitations on appealing plans. Appeals can only be made on substantive or material aspects of plans, and the right to appeal belongs to those with a legitimate interest in the plan’s actions.
The reform still needs approval, and its final scope is unknown; however, its objective is to protect the environment and improve the quality of life in Spanish cities.
Importance of the Land Law for the Real Estate Sector
As a consequence of all the above, it is evident that the Land Law and its possible reform, have a significant impact on the real estate sector. For developers, investors, and property owners, understanding this law is essential to avoid legal issues and to know:
– What the land’s use is.
– What permits and licences need to be applied for.
– Whether or not there is the possibility to modify its use.
– Whether a property is out of planning regulations.
All these elements affect the economic value of the land and may imply significant restrictions on its transfer.
The Land Law of Spain is a key element in ensuring orderly urban development that meets the Sustainable Development Goals (SDGs) and balances the growth of cities with environmental protection and the need for housing access.
We must await the law reform to see what changes are made and if they are useful in addressing the current challenges of urban development.
Developers, builders, investors, and final buyers alike should be aware of planning regulations to make decisions based on updated information. If you have doubts about a plot or want to buy or sell land, contact our team of experts, and we will help you analyse the case from a legal and planning perspective, so you can proceed with legal certainty.
