What are parcels?

Today we will explain what parcelling is, which consists of separating a plot of land into several lots, and how it differs from reparcelling, a legal process that allows for the restructuring of land that has already been divided. We will also discuss segregation, which separates a part of a property in order to create a new, independent property.

What does the term parcelling refer to?

The term ‘parcelling’ refers to the action of dividing a piece of land, farm or plot of land into several independent units. This concept can be understood in different ways, but generally involves the division of a parent property, giving rise to two main types of action:

1. Division: The parent estate is subdivided into two or more independent pieces.

2. Segregation: An existing part of the estate is separated, which can be incorporated into another parcel or formed as an independent unit.

The Land Law clarifies that, in case of possible confusion, the term ‘parcelación’ should be interpreted as the division of a plot of land or, in some cases, the integration of a new space into it.

To better understand these concepts, it is useful to distinguish between ‘finca’ and ‘parcela’ according to article 26 of the said law:

- Finca: It is a unit of land belonging to one or several owners and can be located on the subsoil or surface. Once registered, it is considered a finca registral and acquires status in the Land Registry.

- Parcel: a unit of land with an attribution of buildability and an independent urban use, either on the surface or underground.

Although finca and parcel may seem similar in physical terms, they often differ in their fields of application: the finca is mainly related to private law, while the parcel responds to public law regulations.

Differences between subdivision and reparcelling

In the following, we define both terms in order to avoid confusion:

A. Parcelling

Parcelling is the process of dividing or segregating plots, farms or land, applicable in both urban and rural areas, and is governed by agricultural, town planning and forestry legislation.

B. Reparcelling

Reparcelling, on the other hand, involves the grouping together of plots of land which, by means of a new development plan, are redistributed into reorganised plots or plots of land. This process of urban development management allows the proportional allocation of rights to each owner, creating a new structure of plots in accordance with the planning.

Legal and illegal subdivisions

Dividing and modifying land has an urban impact that can be positive or negative. A legal subdivision is one that, in compliance with current urban planning legislation, allows the division and segregation of plots on urban land, both developable and undevelopable, provided that the corresponding authorisation is granted. Once granted, the regulations establish the conditions and requirements for each plot to obtain a specific buildable area, according to the urban development plan.

Rural plots, which do not have an urban development purpose, must comply with agricultural regulations. They may not be divided, fractioned or segregated into portions smaller than the minimum cultivation unit, as established by the corresponding autonomous community.