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Redistribution of Plots
By:
Juan Bertomeu Valles , Friday, December 10, 2004

Redistribution is the urban transaction that consists of re-dividing properties in accordance with the planning approved in the PAI and allocating them to the owners in proportion to their respective original rights. In other words, it is the grouping of the properties affected by a PAI in order to make a new proportional redistribution according to the Plan.
 The Redistribution of Plots, in this sense, is a legal instrument that solves several legal operations in one single act. Namely, the grouping of properties, segregation of properties, allocation of plots to the owners, boundary regularisation, fair and equal distribution of the costs and charges of the project, and, finally, the transfer of the roads, plots for public facilities and the corresponding building coefficient to the Town Hall. Its precise content will have a wider or narrower scope depending on the conditions of the Sector or Unit of Execution (it can include all the stated operations, only one or some of them).
The approval of the PAI binds all the affected areas to the Redistribution, and the Town Hall is not allowed to grant licenses for the division of plots or building permissions until the Project of Redistribution becomes finally approved and is not subject to appeal.
The Redistribution of Plots can be carried out voluntarily (with the agreement of all the owners affected) or by force (by either the Town Hall or the Developer) .
 The area to be redistributed is defined in the same project of Redistribution of Plots, and normally it coincides with the area delimited in the PAI (although it does not have to coincide necessarily with the Unit of Execution).

The forced Redistribution of Plots must achieve:
a) The fair and equal distribution of the benefits and the charges derived from the planning, including urban development and management expenses.
b) The location of the building coefficient in building sites, in accordance with the planning.
c) Allocation to the Municipality (and, if appropriate, the developer) of the areas of obligatory and free transfer.
d) The forced exchange (if agreement has not been reached), of the original plots for new building sites.
e) Regularisation of the boundaries of all the plots in accordance to the plan.
According to the criteria used for Redistribution of Plots, the allocation of the resultant plots or building sites will take place in accordance with the complete individual building coefficient, leaving the allocated plot subject to urban development charges or, when paying in plots, with deduction on behalf of the above mentioned coefficient, with adjudication to the Developer of the proportional building coefficient as compensation for his work.
Procedure for Approval of the Redistribution of Plots Project.
The procedure of approval of the Redistribution Project is as follows:
a) The project must be open for public scrutiny for a minimum period of twenty days.
b) Accreditation of ownership and circumstances affecting the initial properties through a certificate issued by the Land Registry.
c) Notification for fifteen days given to registered owners who had not been advised either through error or misinformation regarding the project of Redistribution of Plots.
d)   A 15 day period of appeal for those parties affected by alterations in the project made after publication of its contents.
e)  Owners requests put to the developer, within the period of public information, to clarify controversies with regard to the  original rights assessments, and Developer's response.
f)  Reciprocal requests between parties that have been allocated properties under a condition of co-ownership, in order to avoid this situation, if possible.
The Redistribution of Plots Project must be approved within three months from the date the Developer presents all the relevant documentation. The project is considered approved if the Town Hall does not notify the developer to the contrary within the stated period of time. (approval granted by means of administrative silence).
The Decree finalising the procedure must be justified and address all questions raised by the owners. It must also contain all the details needed for the project to be registered with the Land Registry.
Criteria for the Redistribution of Plots.
In accordance with the law, the Redistribution of Plots Project must apply the following criteria:
a. The original properties and rights are valued by applying the state legislation on evaluations (unless the owners come to a more suitable agreement with the developer).
b. The individual building coefficient of the allocated building plot must be proportional to the surface of  the original property. 
c. The property (or properties) allocated to the owner, if possible, forms part of the original plot, or as close to it as possible. If this is not the case, the allocation of the building coefficient can be amended- with more or less buildings coefficient- considering the different values, according to the location, of the original and allocated properties, whenever differences in value occur.
d. It is not possible to allocate, as an independent property, areas smaller than the minimal plot established through the Town Planning.
e. The same plot will not be allocated as joint ownership, against the will of the interested parties, to owners who do not have the right to half the minimal plot, unless joint ownership was held on the initial property. In order to avoid a co-ownership situation, when the project is open to public scrutiny, the parties affected can make reciprocal requests to substitute the quotas of co-ownership stated in the project with monetary compensation. This request must be done by means of a notarised deed and must offer, simultaneous and alternatively, the payment or the cashing of the compensation. The other owner then has a period of ten days in which to choose to pay and obtain the plot or receive the money the other party offers, at the same unitary price. If an owner does not attend a properly formulated request it will be understood that he prefers to take the cash, in which case the plot will be allocated to the other party.
f. When the right of an owner does not reach (or exceed) the minimum to obtain the allocation of an independent plot, the difference can be compensated in cash. The owners and the Developer can carry out the reciprocal requests to determine which party pays and which party receives compensation. (The exercise of this right on the part of the owners is limited to the building coefficient corresponding, proportionally, to the original property that is not eligible to receive the allocation of a plot but may collect replacement compensation). The Developer will act likewise by advising the Town hall when he wants to compensate the surpluses of building coefficient in cash.
g. The owner has the right to receive compensation for the value of any agricultural crops, facilities and constructions on his original property that are incompatible with the Execution of the PAI.
h. Every owner has an "account of liquidation" in the project of Redistribution of Plots. If the owner turns out to be a clear creditor, the Developer will indemnify him before occupying his original property.
i. The whole surface included in the Redistribution area must appear in the Land Registry. For this reason, The Project of Forced Redistribution of Plots demands the registration of any properties not registered, and the rectification of superficial extension boundaries or any other descriptive information.
j. If there are areas built according to the current planning, these are not subject to re-allocation (the original properties remain, although the boundaries can be regularised).
Plots with existing buildings incompatible with the new planning
The areas in which buildings exist that are not in accordance with the planning will be allocated entirely to the original owners, if the following conditions are met:
a. That demolition is not needed to carry out the urban development foreseen in the plan.
b. That they are not intended for uses radically incompatible with the planning.
c. That disciplinary proceedings for non compliance with town planning have not decreed demolition.
d. That the area constructed is in accordance with the regulations decreeing the sizes of building plots.
e. That the right of the owner in the Redistribution of Plots is not less, by more than 50 %, of that corresponding to the minimum sized building plot.
g. The owners who retain their original properties have the same rights to all the effects derived from the Redistribution of Plots.

 
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