The terms “non-residential” and “residential” fund are used frequently. Many are interested in how real estate differs from each other and how to re-register the premises from the status of residential to non-residential.
The change in category is caused by various reasons, usually it is related to obtaining benefits from running a business or renting out real estate. The difference between residential and non-residential premises and the features of the change in status are the main points that we will consider in this material.
Differences between non-residential and residential
Non-residential premises are real estate that does not legally imply the possibility of human habitation, but is designed to be used for commercial profit. Accordingly, it is impossible to register a person in such objects, while the status of residential real estate presupposes the registration of a permanent or temporary registration of individuals. To better understand what residential and non-residential premises mean, we note the differences in the list:
- Business... To obtain the right to conduct business in an apartment, you need to register the owner and head of the business in the same apartment. To carry out various types of work, businessmen sometimes only need to own or rent a suitable non-residential building, this will allow using the property for any production purposes, while in an apartment it is not always possible.
- Utilities... Real estate from different funds is served at different rates - payment for housing and communal services in apartments is much lower. But if there is a commercial activity in a residential building, according to the law, you need to conclude a new contract with a service organization and pay “business” tariffs. For this reason, many owners, when they find out what a non-residential fund is, do not even connect gasification and heating services, leaving only electricity and cold water.
- Price. Residential and non-residential property differ significantly in price, the second option is usually at least 20% more expensive than an equivalent residential apartment.
Many individuals and legal entities are interested in what non-residential premises are. Practice shows that re-registration of real estate may be necessary for a number of reasons:
- Entrepreneurs convert the acquired objects in apartment buildings on the ground floor into pharmacies, small shops, points of delivery of goods or offices.
- Non-residential premises are buildings that cannot be used for living. Therefore, if the owner wants to register and live here, he must register it in the residential category.
What documents need to be prepared for renewal
If all the preparatory activities are completed in accordance with the law, you must contact the Unified Center for the Provision of Administrative Services, where documents are provided for consideration:
- Application for re-registration of real estate in another fund - signed only by the owner of the premises, must be drawn up in accordance with the terms of the Housing Code (LC).
- The title deed to the object to be translated.
- Documents issued by the BTI: plans and technical passports. When a home is multi-storey, a plan for each floor is required.
- Plan for future redevelopment of premises, if work will be carried out after the status change.
An application for re-registration into a residential or non-residential premises is considered within 45 working days. After this period, the authorized bodies must notify the owner of the decision within 3 days. The answer is sent by mail, e-mail or to the administrative center where the documents were submitted. By the way, if you decide buy a house in Kyiv, we recommend contacting the best luxury real estate agency THE Capital.
Residential and non-residential premises: the difference and opportunities for each
It should be borne in mind that according to the conditions of the Housing Code of Ukraine, Article 17, business activity in a residential building is permissible only if the following conditions are met:
- Local residents will not be uncomfortable with your business activities.
- The house where the housing is located does not belong to the dilapidated fund, which means that it is not planned to be demolished in the near future.
- The entrepreneur is registered in the area where he conducts business.
That is, a businessman can easily live in an apartment, pay for all utilities at an affordable price, in comparison with the non-residential fund, consistently making a profit. Nevertheless, understanding what residential and non-residential premises are, many managers nevertheless change the status of housing to commercial, since there is a significant plus here. For example, an apartment in a non-residential fund becomes more expensive if it is put up for sale. For those who are considering residential and non-residential stock, lawyers also recommend taking into account:
- How popular is the property and can it be sold quickly?
- The procedure for processing documents for the object, as it can take a long time.
- Simple premises do not exempt from the payment of utilities, which are about 2 times higher for non-residential premises. Plus, you will have to pay an annual property tax depending on the residual value of the premises, the exact percentage is determined by the local authorities.
Therefore, many experts, whose field of activity is non-residential fund, argue that this is a special group of real estate that requires experience and knowledge of current legislation.
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Transfer of real estate to non-residential status: features
The process of transferring real estate from one fund to another is a complex and lengthy process. ZHK of Ukraine prescribes a number of requirements, they are complied with without fail. If you need to transfer an object from a residential to a non-residential building, this is work that is carried out only under the following conditions:
- If any redevelopments are planned, they should be legalized in the appropriate authorities.
- If the area of the object is more than 100 square meters, you need to organize a second entrance from the street.
- When a premise is located above the first floor, the entrepreneur will have to change the categories of all objects that are below it. All real estate must become uninhabited.
- On the territory of the object there must be conditions for carrying out engineering communications.
- Residential and non-residential premises have a significant difference, since there should not be registered people in the latter, so the entrepreneur needs to check out of the future commercial real estate. Moreover, an object is not recognized as a commercial property if people live in it under a social lease agreement or it is considered a cultural heritage.
Remember: only the owner has the right to change the status of the property!
What you need to remember when re-registering an object from a non-residential fund
It is not easy to transfer a commercial object to a residential stock, since buildings must meet certain requirements:
- The object must be of high quality erected: durable, not included in the list of emergency fund, not subject to demolition.
- It is possible to connect all communications in the room that are necessary for a comfortable stay. This refers to sewerage, gas disposal, electricity, water supply.
- The facility must comply with safety rules and be equipped so that future residents do not have life-threatening situations.
Often, residential and non-residential premises have different ceiling heights - this point should also be taken into account before making a translation. You also need to exclude the sources of the appearance of harmful substances in the air, worry about sound insulation. All technical standards are spelled out in the residential complex, and if the premises do not correspond to them, you can not count on the approval of changing the category of real estate.
At registration residential and non-residential premises should not be encumbered - by pledges, loans or other types of debts.
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Residential and non-residential area: nuances
- Remember, orders, invoices and encumbrances are sent to the owner of any property.
- The area, layout and other technical information in the documents must correspond to the actual data.
In order to avoid difficulties when transferring real estate from one category to another due to ignorance of the law, the help of experienced lawyers should not be neglected. Subscribe to our updates real estate portal and get the latest publications from the real estate agency THE Capital.
