Spanish owners see hope in land grab saga

In Spain, the land grab scandal may have died down somewhat, but there's a new threat to thousands of British home owners in the form of the Coast Law, which could lead to the seizure and demolition of properties deemed to have been built too near the coast. The land grab issue, you will remember, saw thousands of property owners lose all or part of their legally acquired land as it was re-designated as 'urbanisation' and compulsorily purchased.

The final straw was that the dispossessed owner received little compensation and was required to contribute towards building new roads and infrastructure. In August, the European Commission took the Spanish government to the European Court of Justice over the issue. Charles Svoboda, vice-president of campaign group Abusos Urbanisticos No, said the move offered hope to those who had fallen victim to Valencia's land grab laws, and added: "It could be the beginning of the end of these laws."

But the new threat to coastal homes started with the Madrid government announcing in November 2007 that it finally intended to enforce the 1988 Ley de Costas, which prohibited building within 100 yards of the sea, but which has been ignored by local authorities for years. It is part of a drive towards coastal sustainability – not a bad aim in itself, but in theory it could lead to the eventual demolition of tens of thousands of properties. In the meantime, owners of properties built before 1988 have been told they can keep their property for the rest of their life, but they won't be able to sell or pass it on.

In October, the first major demolition under the law took place, when 31 houses in the Tenerife village of Cho Vito were bulldozed. It remains to be seen how determined the Spanish government is to enforce the Coast Law. For anyone considering buying in Spain, the clear message is this: top-notch legal advice is vital, and no amount of due diligence can be too much.

Alexander Garrett is a freelance property writer who contributes regularly to The Observer and British Airways' Business Life.

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