Differences between commercial real estate and residential real estate
The purpose of real estate may vary. Hence the differences between a commercial and residential property. Residential real estate - represented by multi-storey or private houses in which people live (Article 15-16 of the Housing Code of the Russian Federation).
Moreover, if the housing meets all the requirements, then the residence of people is not seasonal, but year-round. Residential real estate is privately or municipally owned by individuals or legal entities. For example: a 2-room privatized apartment in an apartment building or a private house on the outskirts of the city. The concept of “commercial real estate” does not exist in the law. It means non-residential premises, so...
Commercial real estate is non-residential premises presented in the form of a building, part of a building, structure or land. The main purpose of such objects is to make a profit from doing business or renting out. Examples: stationery store, business center, production workshop, warehouse, garage, hotel, apartments.
The main difference is that residential real estate is suitable for permanent residence and registration of citizens, while commercial real estate is not suitable.
The law prohibits the use of residential property as commercial property, and vice versa . You cannot equip a production workshop in an apartment. An exception may be the activity of an individual entrepreneur “at home”, for example, a lawyer, tutor, nanny, artist, programmer, etc.
For the use of residential premises in violation of its intended purpose, a fine is provided - from 1,000 to 1,500 rubles (Article 7.21 of the Code of Administrative Offenses of the Russian Federation).
How to convert residential property to commercial
Commercial real estate and office centers are the future of most buildings after their reconstruction. The building, after its reconstruction and functional repurposing, can become real estate from which you can make quite a good profit. Simply convert it into various office spaces and rent them out to tenants. Such changes, for example, from an ordinary apartment located in the very center of the city, will create a no less profitable enterprise than a new, modern, fully equipped business center building.
- The apartment must be non-state and non-municipal, and be the private property of the owner.
- There should be no registered individuals in this living space.
- The residential property must be located on the ground floor of a residential building. The law does not prohibit the installation of a store or office on the upper floors of a residential building if non-residential premises are also located underneath them.
- The apartment should not be pledged to a financial institution.
- It should be possible to build an entrance to a non-residential premises from the street, and not from the entrance.
- The residential building in which the apartment is located should not be dilapidated and subject to demolition in the coming years.
Also read: What checks can be accepted for advance reports from July 1, 2018
Is it possible to translate them?
It is possible to change the status from non-residential to residential. But you need to understand that this is not a quick and financially expensive procedure. You will have to take into account the opinions of residents, supervisory authorities, administration, co-owners, etc.
What difficulties may arise:
- Disagreement between residents and neighbors
According to the new rules, in 2020 the opinions of residents of an apartment building must be taken into account. Apartment owners have the right to influence the conversion of residential premises to commercial ones, and vice versa. For example, if they are not satisfied with the location of the store on the ground floor, the issue will not go further than discussion, and government agencies will be powerless.
Why is it so difficult to obtain the consent of residents to change the status of real estate? Cases have become more frequent when, instead of a store or salon, a beer bar, hookah bar, club and other establishments were opened on the ground floors. Residents of the house experience inconvenience from such a “neighborhood”; there are conflicts, unsanitary conditions, night noise, loud music, etc. Now, in order to convert a residential property into a commercial property, the owner will have to invite residents to a house-wide meeting. It is necessary to receive at least ⅔ votes - not only from apartment owners, but also from the owners of non-residential properties in the entrance. Voting does not apply to private homes. Local administration officials monitor the accuracy of the calculations.
- Technical difficulties
The owner of a commercial outlet will have to take into account SanPiN, fire safety standards, urban planning rules and regulations. Converting non-residential premises into residential ones is more difficult. Sometimes it's easier to just sell the property on the real estate market.
- Administration refusal
The third problem can be considered refusal from the local administration. They are reluctant to issue translation permits. Even if the reconstruction is technically possible and communications are in place, difficulties still arise. For example, due to the fact that the property is pledged to the bank. You will have to request the lender's consent (99% of the time there will be a refusal). Also, an obstacle may be the refusal of guardianship and trusteeship authorities (GTC). Especially if the housing is designed as an office, and the apartment also belongs to a child.
Is it possible to convert a cottage into commercial real estate?
Having your own business or business, sooner or later you are faced with the need to purchase your own commercial premises . To do this, you can purchase or rent space, but, as a rule, this is quite expensive. Therefore, some entrepreneurs are converting their residential premises into commercial ones .
Entrepreneurs who have encountered such a procedure already know that this cannot be done without good preparation, since there are a number of restrictions that are spelled out in the Housing Code and are the main obstacle to changing the status of a residential building .
26 Jun 2020 stopurist 422
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Where and how to submit documents?
The application and documents must be submitted to local authorities. Most often this is the city executive committee. Bodies can be either elected or appointed.
The main thing is that it should be local, municipal government.
Government agencies are not involved in processing the transfer of premises; they simply will not accept the application.
When submitting documents, you need to remember the following:
- The redevelopment project, if necessary, should already be ready. It must be submitted along with other documents. If the project has not yet been completed, then there is no point in writing a statement.
- The technical plan from the BTI does not need to be submitted. Local government employees will order this document themselves. But then, upon receipt of the results of the review, the person will be issued a receipt for payment of BTI services.
- The more detailed and competent the application is filled out, the better. Particular attention should be paid to the purposes of the transfer of premises and the legal grounds. The application should refer to the articles of the RF Housing Code.
If the documents have been accepted, this does not mean that the application will be approved. Refusal, like approval, is not issued immediately, but only after a thorough check.
Terms of transfer
Before undertaking a transfer, you need to assess the living conditions.
The law makes the following requirements:
- the presence of capital (load-bearing) walls;
- windows, doors, partitions for dividing living space inside an apartment or house (kitchen, bathroom, toilet, living rooms, corridor - balcony or loggia as appropriate);
- all communications have been carried out: electricity, heating, water supply and gas, and in the absence of such, there are substitutes (for example, in a private house there is a gas boiler or a well for water production);
- developed infrastructure, presence of local area, entrance, parking, children's playgrounds, green areas, etc.
- suitability of housing for human habitation, for example - unsafe non-residential buildings pose a threat to life and health, they are subject to demolition;
- proper sewerage, insulation for walls;
- insolation - penetration of sunlight, lighting of residential premises during the day (at least 150 minutes).
Of course, real estate must meet the requirements of SNIP, SanPiN and other conditions . If the commercial property does not belong to the applicant, but is leased by him, the transfer is impossible. In addition, the property should not be under arrest, mortgage or other encumbrances.
What actions need to be taken to change the status of real estate - from non-residential to residential:
- firstly, check the utilities, if they are not there, supply electricity, water (hot water supply and hot water supply), heating systems, sewerage;
- secondly, check the supporting structures for defects (there should be no cracks, breakage, or threat of collapse);
- Third, install water leakage protection devices.
It is better to entrust the inspection of the site to engineers. They will tell you how best to correct the shortcomings, what to buy in addition and how much it will cost. You are unlikely to cope on your own.
Premises requirements
Chapter 3 of the Housing Code of the Russian Federation, as well as legal acts regulating urban planning activities in the state, define the grounds for changing the status of residential property to non-residential.
The apartment can be converted into a commercial property subject to the following conditions:
1. Living space located in an apartment building can change its status if it is located on the ground floor of the building.
If the apartment occupies higher floors, then the objects located below it must be commercial.
2. The premises need a separate entrance that does not open onto the residential entrance of the building.
3. Possibility to build an entrance to the apartment that is not connected to it and is part of the real estate.
4. The area planned for transfer cannot be used by residents for permanent residence.
5. The owner’s rights to housing cannot be encumbered by the demands of interested parties.
6. The premises must meet the conditions established for the transfer of housing.
Housing stock
In order to properly remove an apartment from the housing stock , it is necessary to take into account some nuances. For example, it is necessary that the apartment be on the ground floor, or that the premises below it be non-residential. The entrance to such an apartment should also be located separately from the entrance to the residential entrance. Registration in an apartment belonging to the non-residential stock is impossible, therefore, before removing the apartment from the residential stock, you will need to register everyone who was registered in this territory. You will also have to obtain the consent of adjacent neighbors.
Interesting: How to convert a residential building into non-residential premises
Today, more and more people are starting their own small business activities. But in order to open an office or store, you need suitable premises. And often the most convenient and simple solution for this is to remove the apartment from the housing stock in order to use it, so to speak, for commercial purposes. In addition, the cost of commercial real estate is much higher than residential real estate. In the future, such real estate can always be sold on more favorable terms.
Why is this required?
Converting residential premises to non-residential premises is not always advisable. If, for example, the type of business activity does not require fundamental changes in the layout of the premises and its intended use, then there is no need to change its status.
This applies to cases of lawyers carrying out professional activities, organizing a massage parlor at home, providing consulting services, tutoring activities and other types of self-employment that do not entail a change in the living conditions of the owner and his family members.
- If the owner - an individual has the right to carry out business activities in his apartment without changing the status of housing, then the legal entity renting the premises does not have the right to use it even as an office. In this case, the intended use of the residential premises under the lease agreement can only be the residence of the organization’s employees.
- If a legal entity is the owner of the property, then in this case the apartment can be used to organize an office, but again subject to the requirements of housing legislation for residential premises.
Definition, differences and purpose of real estate
According to the norms of civil and housing legislation, real estate can be residential or non-residential. The Housing Code of the Russian Federation includes the following as housing stock in which legal residence of citizens is possible:
- private individual and multi-apartment residential buildings;
- dormitories;
- hotels.
Non-residential property includes real estate that is used for:
- commercial (for details on how commercial real estate is classified, what its types are and other characteristics, read here);
- public;
- administrative and other purposes.
Residential premises intended exclusively for permanent residence of citizens must be isolated and comply with all established sanitary, technical and fire standards (Article 15 of the Housing Code of the Russian Federation).
Commercial invisibility has the opposite purpose - it can only be used for business and other purposes unrelated to residence.
Is it possible to use housing for the purpose of conducting business?
The Housing Code of the Russian Federation reserves for citizens the right to engage in business in their own housing, but under one condition - if this does not violate the housing rights of other citizens living next to it, and if the apartment continues to meet the requirements for residential premises (clause 2 Article 17 of the Housing Code of the Russian Federation).
Therefore, if the business that is planned to open in your living space will not disturb the neighbors and the housing does not need to be rebuilt, violating sanitary norms and rules, you can use the apartment for professional activities, provided that the entrepreneur is the owner of the apartment and there is no objection to his activities relatives registered in it.
Just about the complex: how you can convert residential real estate to commercial and vice versa
- The main difference between commercial real estate and residential real estate is the impossibility of permanent residence for people, since it belongs to the non-residential stock.
- Investments in commercial real estate have a narrower focus than residential ones.
- An indicator of commercial real estate is its payback (the optimal period is 5-7 years).
- They rarely buy commercial real estate; they prefer to rent.
- A document confirming ownership of this living space.
- Passport.
- Floor plan of the premises and explication - you need to order it from the BTI, write an application and provide a passport with the title document for the apartment.
- Technical passport - ordered from BTI.
- Certificate from the housing department - it must contain information about the status of other premises that are located on the same floor as this apartment.
- The consent of neighbors is one of the most important documents (it cannot be ignored). If the apartment is located in an apartment building, then it is necessary to organize a meeting of apartment owners. To do this, you need to contact the Management Company with an application to hold a meeting. The decision will be legal if more than 50% of the owners are present at the meeting.
- Conclusion of the fire inspection - the document must indicate that this property complies with fire standards. To obtain it, you need to contact the Main Directorate of the Ministry of Emergency Situations with an application, after which the premises will be inspected by a fire inspector. Then, after the inspection, if everything meets fire safety requirements, a conclusion is issued.
- Conclusion of sanitary and epidemiological supervision - you can get it from Rospotrebnadzor. After checking whether the premises comply with sanitary standards, a conclusion is issued.
- Technical report - issued by the Management Company; it must reflect the general technical condition of the house (which is not in disrepair).
- An extract from the house register - it must confirm that no one is registered in the apartment.
- Developed project for the conversion of residential premises into non-residential ones.
Also read: What cars are used to take the traffic police exam?
Step-by-step instruction
Once the decision to change the status of the apartment has been made, it is necessary to take a number of steps to prepare a package of documents. To do this you need:
- Request a technical plan of all floors and explications for the building. To do this, you need to submit an application to the local government indicating the reason for the request. The appeal is considered within 30 days.
- Request a technical passport of the apartment and a cadastral plan from the BTI.
- Request permission for the transfer from the city's sanitary and fire departments.
- Send an application to the management company to provide an opinion on the technical condition of the apartment building (apartment building).
- Obtain a certificate about the status of the personal account and the composition of the owner’s family to identify persons registered and living in the apartment. The certificate is requested through the MFC authorities.
- Think over the floor plan after changing the status (if necessary) and order documents for redevelopment.
In connection with changes to the Housing Code of the Russian Federation, in order to transfer an apartment to non-residential premises, not only the protocol of the general meeting of owners of apartment building premises on consent to the transfer, but also the written consent of each owner of apartments adjacent to the future non-residential premises must be sent to the local government body (Part. 2, Article 23 of the Housing Code of the Russian Federation).
How to remove premises from housing stock
- There should be no registered citizens in the premises.
- The premises cannot be encumbered by the rights of third parties.
- The premises should not be part of a residential premises, that is, not be a share that does not constitute an isolated premises.
- It must not be mortgaged or seized.
- The citizen transferring housing to non-residential stock must be the owner of this housing.
- The apartment must be located on the ground floor or above a non-residential premises. Transfer to non-residential property can also be carried out if the premises located above belong to the same owner.
- The house should not be included in the plans for major repairs or reconstruction, not be recognized as unsafe and not subject to demolition.
Interesting: Debt on payments for living space Utility payments What is it
The procedure for transferring residential premises to non-residential premises is enshrined in Art. 23 Housing Code of the Russian Federation. The transfer is directly processed by the local government body, for example, the City Property Management Committee, the Housing Policy Department of the city administration, etc. Typically the translation process consists of three steps
List of documents
In accordance with Art. 23 of the Housing Code of the Russian Federation, the application for transfer must be accompanied by:
- title documents for the apartment (originals or notarized copies) - if you don’t have them on hand, you can get them from Rosreestr;
- technical passport of the apartment - obtained from the BTI;
- floor plan of a residential building - contained in the technical documentation of the MKD, ordered from the BTI;
- an agreed project for the reconstruction and redevelopment of residential premises (if required by the translation project) - ordered from the design organization;
- protocol of consent of the owners of apartments in a residential building to use the premises for commercial purposes - drawn up at a general meeting;
- consent of each owner of premises adjacent to the premises being transferred to transfer it to non-residential premises.
Additionally, identification documents of the applicant for an individual or constituent documents for a legal entity may be required. If the application is not submitted by the owner of the premises, a document certifying the authority of the representative is attached.
Withdrawal from housing stock in Novosibirsk
Transferring an apartment in an apartment building to non-residential premises is permitted if the following requirements are met: - The apartment is located on the first floor of the building (the premises may be higher, but there should be no other residential premises below them). In exceptional cases, it is possible to change the functional purpose of the entire building, as well as its reconstruction with a separate entrance; — No one is registered in the apartment; — The house is not in disrepair; — Neighbors living in neighboring apartments do not object to the removal of this apartment from the housing stock and are ready to confirm their consent in writing; — The scope of activity of the future company is permitted by SNiPs (when using the premises after its transfer as non-residential premises, fire safety requirements, sanitary and hygienic, environmental and other requirements established by law, including requirements for the use of non-residential premises in apartment buildings, must be observed). If the apartment being removed from the housing stock meets all of the above requirements, then you can proceed to the preparation of the necessary documents.
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What needs to be taken into account when removing premises from the housing stock In accordance with the Housing Code of the Russian Federation (Article 22. Conditions for transferring residential premises into non-residential premises and non-residential premises into residential premises), the removal of residential premises from the housing stock and transferring it to non-residential premises is not allowed if : — Access to the premises being transferred is impossible without the use of premises that provide access to residential premises, or there is no technical ability to equip such access to this premises; — If the transferred premises are part of a residential premises or are used by the owner of this premises or another citizen as a place of permanent residence, and also if the ownership of the transferred premises is encumbered with the rights of any persons. Thus, if it is not possible to organize access to an apartment being removed from the housing stock without using, for example, a flight of stairs (which provides access to other apartments in the entrance), a separate entrance to the apartment is required - most often it is made from a window, balcony or loggia.
How to make an application?
An application to change the status of a residential premises is submitted in any form:
- The head of the document indicates the body to which the petition is sent.
- Below, in the middle of the line, the word “Statement” is indicated.
- The text of the document indicates the name of the applicant - full name. citizen, residential address, contact and passport details.
- If the owner’s representative applies, please indicate the details of the notarized power of attorney, full name. representative and his passport details.
- The following is the essence of the appeal, which reflects:
- basis for the appeal;
- intended type of permitted use;
- the work to be carried out;
- the need to carry out repairs to the premises and sanitary work in accordance with the project;
- the need to ensure free access to the work site;
- work schedule indicating deadlines and hours;
- obligation to respect the rights of other owners of residential premises when using the premises for commercial purposes in the future.
When should you translate?
- The apartment is located on the 1st floor and the owner has a desire to convert it into a store, salon, pharmacy. In accordance with the legislation of the Russian Federation, commercial activities cannot be carried out in residential premises.
- The apartment is located above non-residential buildings (Article 22 of the Housing Code of the Russian Federation).
It is possible to achieve approval of the procedure if the infrastructure of the area where the house is located is well developed, the property itself is safe, communications meet sanitary requirements (heating, sewerage, electricity, ventilation), and the building does not threaten human life.
If there is such a desire, it is necessary to redevelop the premises and, if the redevelopment affects the residents of the house, written permissions and minutes of the general meeting should be collected.
What real estate cannot be converted into a non-residential property?
The Housing Code, Article 22, establishes cases when changing the status of residential space to commercial is impossible.
A transfer cannot be made if:
• Access to the space is possible only by using the common entrance to the remaining apartments or it is not technically possible to construct such a passage;
• The owner or other persons permanently reside in the apartment;
• Home ownership is encumbered by the claims of third parties;
• Housing is rented in a social building;
• Translation is carried out for the purpose of religious events;
• The property does not meet the requirements for commercial properties.
How much to pay?
When converting real estate to non-residential, you need to pay a state fee. Its wording is “state duty for registration of non-residential premises.” The exact amount of payment is not established by law. It is calculated individually, based on the characteristics of the property, the conditions of its location, and the subtleties of the procedure.
In addition to the state duty, you should be prepared for other expenses. At a minimum, this is payment for a registration certificate at the BTI and notary services, and at a maximum, payment for services for creating a redevelopment project and the repair work itself.
Is it possible to cut costs?
It's unlikely that this will work. Suppose you decide that you will do without intermediaries and undertake to coordinate everything yourself. However, this will take much more time than if you contacted a law firm. It should be taken into account that officials often delay resolving issues and postpone meetings.
The “life” of documents is also finite. If you are late, you will have to apply and pay again. If an intermediary organization helps you, in total you will spend one and a half to two years to implement your plan.
So, if you decide to take the path of business and not just rent a room, but become the owner of your own commercial “squares,” be prepared for the fact that the work ahead of you will be long and difficult.
But the gain is obvious - you don’t have to frantically look for a cheaper place to rent and adapt to the landlord’s wishes, which, you see, is a huge plus for an entrepreneur.
The procedure for transferring an apartment to non-residential status
The procedure consists of certain steps that will need to be completed to achieve the optimal result.
Stage 1 – collecting the necessary documents
The papers are submitted to the Department of Property and Land Relations for the work of an interdepartmental commission that agrees on the possibility of changing status. Preparation of documentation is carried out by the owners of the premises or their representatives.
You will need to submit to the municipality department:
• Floor plan of the building , its description. It is ordered from the BTI after the Department has issued the appropriate power of attorney. The Bureau must submit an application in the prescribed form, an identification document of the person applying, and title papers for the living space (agreements on the transfer of rights, an extract from the Unified State Register of Enterprises, a certificate of inheritance, etc.). The period for completing the documentation can be up to thirty days.
• Housing layout and technical passport for it. They may be required by the BTI;
• Conclusion on compliance with fire safety requirements. It is issued by the State Fire Department of the Ministry of Emergency Situations, after submitting an application and examining the property for compliance with regulated standards;
• Conclusion of the SES. Issued in Sanitary and Epidemiological Supervision after inspection of the premises by an employee of the organization;
• Reference information about the purpose of other premises located on the same floor as the apartment being transferred. It is obtained from the organization servicing the house. For this purpose, you need to submit a corresponding application, attaching the applicant’s passport, representative power of attorney and title documentation for the living space;
• Coordination with adjacent real estate users. If the property is located in a multi-storey building, a meeting of apartment owners will be required.
For this purpose it is necessary:
1. Contact the management organization with a request to include this item in the agenda of a planned meeting of residents or to hold an extraordinary event. If it is held out of turn, each owner will need to be notified of the time and day of the meeting no later than ten days in .
2. The decision is recognized as lawful, and the meeting is considered valid, when more than half of the homeowners took part in it.
3. The legality of the decision is established if 2/3 or more votes of all those present voted for it. Based on the results, a protocol is drawn up.
• Certificate of technical condition of the entire building. It can be obtained from HOAs and other management companies;
• An extract about the residents registered in the apartment. Issued at the passport office. Its validity period is no more than two weeks;
• Project of planned redevelopment. Compiled by employees of a design company operating on the basis of a license.
In addition to the above papers, the following are submitted:
- Passports of all property owners;
- Documents confirming the right to housing;
- Representative power of attorney;
- When submitting an application from a legal entity, its registration and constituent documents will be required. The resulting list of papers is reviewed within a period of up to 1.5 months . Based on the results, a decision is made, of which the applicant is notified within 3 working days by post or personally delivered.
How to convert an apartment from residential to non-residential? 2020
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It follows from the law that a residential premises is considered to be something that is isolated and belongs to real estate. The apartment or house itself must be suitable for human habitation, and therefore comply with certain sanitary and technical standards. It is worth noting that there is no definition of non-residential premises as such, although if we proceed from the norms of the laws that regulate this issue, we can conclude that non-residential is an isolated object in which it is simply impossible to live. Although it will also apply to real estate.
A significant difference between these two concepts is that people can live in a residential building, but it cannot be used for commercial and entrepreneurial purposes, while non-residential premises are suitable for opening a cafe or office.
If we talk about the structure that will deal with the transfer of apartments from one fund to another, then this is often done by the property management committee, the housing policy department of your city or district, and so on.
This procedure can only be carried out if certain conditions are met. If your premises do not comply with them, then it is unlikely that you will be able to do anything about it.
Such conditions include the following:
- No citizens should be registered in the property;
- Encumbrances from third parties are not allowed;
- The premises cannot be part of a specific residential building;
- The property must not be mortgaged or seized;
- The person who decided to transfer the premises from one fund to another must be the direct owner of the property;
- The apartment itself must be on the ground floor, or only non-residential objects can be located above it. Although it is allowed when the apartments above also belong to the same owner;
- The house itself should not be considered unsafe or be in line for major reconstruction;
Although this cannot be said to be the entire list of conditions. There are others that are mandatory. For example, it is necessary to be able to arrange a separate entrance and disconnect some types of communications and gas supplies.
Before starting the procedure, you will need to collect a certain package of documents to submit to the housing fund of your city.
These include:
- Application for withdrawal to a non-residential fund. It is important to understand that the law does not provide any clear conditions for its writing, so it can be compiled in any form;
- Documents of title for an apartment or house, which are often such as a certificate of ownership, a will, a purchase and sale agreement;
- Floor plan and technical report from BTI;
- A project for the future reconstruction of the premises, if it is required for further business activities. In this case, it is necessary to indicate the company and the name of the engineer who led the project, and a license to carry out the reconstruction of a non-residential property.
Despite the fact that the application is drawn up in any form, there is still a number of mandatory information that you will need to indicate in the document:
- Passport details of the apartment owner;
- Data of the legal entity that represents the interests of the entrepreneur;
- The applicant’s registration and residence address, contact details, passport details;
- A document damaging the ownership of the premises;
- If the interests of the owner are represented by another person, then it is necessary to show the power of attorney and indicate information about it in the application;
- Information about the absence of encumbrances, debts, etc.;
- Address of the property;
- If redevelopment is to be carried out, then you need to indicate which one, attach a work plan and briefly describe future work;
- The purpose of transfer from residential stock to non-residential stock;
- List of documents that you attach to the application.
After you submit all the documents, you will receive a statement confirming their acceptance for consideration. It is worth noting that we have described the entire list, which means you have no right to demand others from you, no committee has the right.
After the relevant authority has received the entire package of documents from you, you will receive a corresponding statement with the date the procedure was started. You should receive an answer to your question no later than in a month and a half. Within three working days after this, the applicant will be sent a special letter by mail, which will indicate a decision on whether you can remove the property from the housing stock. If it turns out to be positive, then you need to begin the procedure for registering rights to non-residential premises.
It also happens that the decision states that you must carry out redevelopment, and indicates which one. Then, after the repair, a certain act will be drawn up, and then you will also be able to register ownership of the object.
There can be no other reasons, so immediately take care that such problems do not arise. If the period for making a decision on withdrawal is longer than normal, then you can demand a trial in court.
You will only need commissioning when rebuilding the property. Don't forget about registering your property rights. Without this, the premises will not have a legal owner.
It is worth remembering that no one will be able to change the status of your apartment and convert it into a non-residential property if you, as the owner, do not give your consent, and a certain body in your city does not approve the project. At the same time, the local municipality is not considered the body that can make decisions.
To refurbish a property and build a separate entrance, you will need to go through a certain number of procedures and also collect some documents.
In fact, this process is quite complex and requires a lot of effort and care. You will need a lot of documents to transfer to a non-residential fund; you will have to bypass any inspection. Although the result is worth it, because in the end you will get a premises to start your business. And this option is much cheaper than renting or buying a separate building.
Our articles talk about typical ways to resolve legal issues, but each case is unique. If you want to find out how to solve your particular problem, please contact the online consultant form.
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Or call us by phone (24/7):
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Do you want to make a store out of your own apartment? Turn your office into a place of permanent residence? The legislation provides for both options. This material will tell you where to go, what documents to prepare, what and how to do.
When opening a small business, rarely does anyone dare to build commercial real estate from start to finish. Renting also does not appeal to everyone. Despite a number of advantages, you cannot bring all your ideas to life on rented square meters. The solution to this problem for many is to buy apartments on the lower floors of high-rise buildings and arrange offices in them. The procedure for removing square meters from the housing stock is not intimidating in its complexity, but its own is still closer than the most popular business centers. True, there are some nuances in this matter. If you fall under several restrictions, you can easily receive a negative response to a request to convert a residential premises into a commercial one.
However, there is also the opposite situation. For example, you inherited an apartment that was once removed from the housing stock and was used for quite a long time for business purposes. If you have neither the desire nor the ability to continue the business, and what’s more, the housing issue has not been fully resolved, you can consider the option of returning the square meters back to the housing stock. This procedure will be almost identical to that which occurs during withdrawal, however, there are a number of significant requirements specifically for the premises themselves. They are determined by sanitary, hygienic, technical and similar standards that apply specifically to housing. Many will argue that it is easier to sell such an apartment and buy another one in return. However, situations in life are different, and the option of putting the premises back into the housing stock should not be discounted. Moreover, the legislation does not prohibit such developments.
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If you live in Russia, then the minimum set of legal knowledge should be based on the norms of the Civil Code. The truth is, when it comes to housing, GC is not the best help. In the case of converting square meters intended for human habitation into the category of commercial real estate, as well as the reverse option, you should first of all turn to the Housing Code. He will answer most questions regarding the procedure for applying to the relevant authorities, conditions of refusal, and many others. An entire chapter, number 3, is devoted to these points, namely articles 22 to 24.
Another code that will answer some questions regarding design, construction and obtaining various permits is the Town Planning Code. Its standards must be observed during any other construction-related activities. In terms of transferring square meters from housing to the category of commercial real estate, the Civil Code should be read when installing a separate entrance and designing any internal and external changes. Those who use printed publications to fill in gaps in legal norms should purchase a new edition, as changes appeared in it in 2013, and the next edition will come into force from the beginning of 2014.
When transferring commercial real estate to the residential category, you should also familiarize yourself with the norms of the Government of the Russian Federation No. 47 of January 28, 2006. This document will shed light on what properties the transferred premises should have.
Local documents should not be neglected either. Of course, it will not change the requirements of the Housing Code or federal laws, but it may establish some features of filing applications or simplify the procedure for making a decision specifically for your region.
Before attempting to remove any area from the housing stock, you should check whether it falls under one of the following points:
- the premises do not have their own entrance, and it is not possible to organize it (example: to enter the hairdressing salon being created, you will have to use the common entrance, which is intended for the passage of residents of the house to the apartments);
- after being transferred to the category of commercial real estate, the premises will continue to be used as housing (it is impossible to simultaneously make a home and an office from one room);
- the right of ownership to areas removed from the housing stock is somewhat limited (example: used as collateral for a loan taken from a bank and not repaid at the time of filing the transfer application).
As for high-rise buildings, mainly the lower floors can serve as objects for output. This is due to the technical complexity of arranging a separate exit. It is rare to see a truly worthy solution for lifting visitors to the 3rd and higher floors without using platforms, the direct function of which is to organize passage to the accommodation. Undoubtedly, there are buildings that offer such options, but there are disproportionately fewer of them.
For multi-storey residential developments there are additional restrictions regarding commercial real estate. You can convert them into non-residential:
- objects on the ground floor (apartments, groups of apartments, apartments with basements, etc.);
- objects located on the second floor and above, provided that there is also a commercial premises on the floor below, for example a bank office or some kind of exhibition hall.
You can turn an unnecessary office into a place for people to live, provided that all the requirements listed below are met. Namely:
- a commercial premises that is planned to be a place of residence for people must be located in a residential area (meaning that buildings or rooms located on the territory of the plant cannot be considered suitable for habitation, regardless of whether they meet the other parameters or not);
- load-bearing walls, partitions, enclosing structures must be intact, not threaten to collapse and not have a deforming effect on the building as a whole;
- the arrangement of the premises should eliminate the risk of injury (ceiling height, width of passages and doorways, steps, etc.);
- the premises must be fully connected to all necessary networks (gas, electricity, sewerage, heating, water supply - depending on their availability, no one in the village will naturally require centralized heating or water supply);
- equipment and mechanisms, as well as engineering systems, must comply with sanitary and hygienic standards (example: it is not allowed to combine kitchen and bathroom ventilation shafts with living rooms; fans and motors of mechanisms must have acceptable levels of noise and vibration);
- all equipment installed in the premises must comply with safety requirements;
- the temperature of the heated room in winter should not drop below 18 degrees;
- the premises must be excluded from the possibility of flooding by precipitation and melt water;
- if suddenly your office or any other commercial property turns out to be higher than the fifth floor, then it can only be recognized as housing if there is an elevator in the building;
- the premises itself and the building in which it is located must comply with fire safety standards;
- the room should be sufficiently illuminated by natural (sun) light;
- the floor level of the room must be higher than the ground level (basement or semi-basement type premises are not suitable for habitation);
- the location of kitchens and bathrooms above rooms is not allowed;
- the room should not allow unacceptable levels of noise from outside;
- the room should not contain a level of vibration, electromagnetic radiation or infrasound higher than the maximum norm for housing;
- the content of harmful impurities in the air of premises for human habitation should not exceed the permissible norm.
It makes no sense to rewrite all the norms of SNiP, SanPiN and other documents establishing technical requirements for premises that will subsequently become housing in one article. The list will be quite impressive. You can find out whether the premises have any shortcomings already during the translation. If the premises have inconsistencies that can be eliminated by redevelopment or reconstruction, then a documentary refusal on this basis will be a legal permission to carry out the latter. This is confirmed by paragraph 8 of Article 23 of the LC.
In order for a commercial premises to be recognized as residential or a former residential premises to be used for business activities, the first step is to collect all the necessary documents. The list of papers is not too long. Some of them may not be provided at all if the right to the square meters in question is registered in the Unified State Register of Rights to Real Estate and Transactions with It. Despite this, we will still list a complete list of required papers.
The first thing you need to provide is an application. Its form with examples of completion can always be found at the authority responsible for the translation.
The document that must first be attached to the application is a document confirming your right to premises. It is attached in the original or as a copy, but with mandatory notarization. As mentioned above, if the Unified State Register contains information about your right to premises, then this document is not required.
The next paper on the list of applications is the floor plan. For apartments, when converting them into commercial real estate, you can use a technical passport. For a commercial premises, it is necessary to prepare a plan with a detailed description of the technical characteristics, on the basis of which it will be possible to make a preliminary conclusion about the suitability of such a place for human habitation.
A floor plan of the house is also required to make a decision. It, like the previous item on the list, may not be provided, however, if such documents are in the hands of the owner of the premises, it is recommended that they be submitted along with the application. This will simplify the work of the body responsible for the translation and somewhat speed up the procedure.
If the transfer requires redevelopment or reconstruction, then the project with the developed solutions should also become an annex to the application. This point is not left to the discretion of the applicant, and in the absence of a project among the submitted documentation, the requested procedure may be refused.
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Additionally, written consent of all owners is provided if the premises have several of them.
Now let's talk a little about the sequence of actions. After preparing a package of documents, it is submitted to the local government body for review. If some papers are missing, they are requested additionally, and after they are fully completed, they are considered. If there are no complaints about the documents, specialists go to the site to check the compliance of the premises with the transferred papers. After this, a decision is made. The total review period should not exceed 45 calendar days. Once the decision is made, the local administration has three more working days to process and send it.
The transfer of premises may be refused in several cases:
- The documents attached to the application are not sufficient to make a decision. Please note that the authority responsible for the translation cannot require documents not included in the list described above. However, the transfer of an incorrectly executed document or one that does not correspond to reality will lead to refusal for this very reason.
- The second option for refusal can be obtained by sending documents to the wrong organization. This happens quite rarely and happens when papers are sent by mail. By bringing all the documents in person, you will avoid such a refusal, since they simply will not be accepted at your address. Yes, and on the spot it will be possible to correct the shortcomings of the application, if any.
- A refusal, which puts an end to attempts to transfer the premises, is issued due to non-compliance with mandatory conditions. This may be an attempt to recognize as housing a completely unsuitable premises, for example an underground bunker.
- The last option of refusal is issued when redevelopment is required to convert commercial space into residential space or vice versa, but the design of these changes is missing or made with violations. You can read more about this in our other article.
Finally, it should be said that any decision of the local administration, including the refusal to transfer commercial real estate to residential real estate and vice versa, can, and often even needs to be appealed in court. For example, if you submitted all the documents, but they demanded additional data from you, if in your opinion the commission unlawfully refused to recognize the redevelopment as complying with the standards. True, judicial practice is increasingly on the side of local governments in the case of such proceedings. Perhaps the reason for such decisions is people’s ignorance of the laws of their country and their appeal to the court with requests to recognize as lawful things that are fundamentally contrary to regulations.
Conclusion from the housing stock: what is the benefit for the business buyer?
An apartment on the ground floor somewhere in the city center is the best option for creating your own business. Transferred from the category of residential to non-residential, the premises can be used as an office, store, beauty salon, hairdresser... An apartment converted into non-residential premises will cost the entrepreneur less than buying a ready-made commercial property.
Conclusion from the housing stock: what is the benefit for the seller-owner?
Property on the ground floor of a residential building, as a rule, costs relatively less than residential premises located on the middle floors. The price difference can reach up to 10%. And the so-called “pre-sale” withdrawal from the housing stock could significantly increase the cost of the property being sold.
Despite the possibility of additional benefits for the seller of an apartment when transferring the property from residential to non-residential, withdrawal from residential
and the subsequent sale of the property is not as common a scheme as it might seem at first glance.
Why? The withdrawal from the housing stock
is still a complex and rather lengthy process, requiring professional knowledge, investment of funds and time-consuming. In addition, an apartment transferred to the category of non-residential premises sharply narrows the circle of possible buyers. It should also be taken into account that for premises converted from residential to non-residential, different electricity prices apply. Therefore, in practice, most often we are dealing with a situation where a residential apartment is purchased with the aim of further removing it from the housing stock by the new owner. It is likely that the entrepreneur will need to redesign the premises so that it best suits the assigned tasks; the changes made can be simultaneously agreed upon when preparing documents for the removal of the premises from the housing stock.
What needs to be taken into account when removing premises from the housing stock
In accordance with the Housing Code of the Russian Federation (Article 22. Conditions for the transfer of residential premises to non-residential premises and non-residential premises to residential premises), the transfer of residential premises to non-residential premises is not allowed
, If:
1. Access to the premises being transferred is impossible without the use of premises providing access to residential premises, or there is no technical possibility to equip such access to this premises;
2. If the transferred premises are part of a residential premises or are used by the owner of this premises or another citizen as a place of permanent residence, and also if the ownership of the transferred premises is encumbered with the rights of any persons.
Thus, if it is impossible to organize access to an apartment being removed from the housing stock without using, for example, a staircase (which provides access to other apartments in the entrance), a separate entrance to the apartment is required - most often it is made from a window, balcony or loggia.
Transferring an apartment in an apartment building to non-residential premises is permitted
, if the following conditions are met: 1. The apartment is located on the first floor of the building (it can be higher, but there should be no residential apartments below it). In exceptional cases, it is possible to change the functional purpose of the entire building, as well as its reconstruction with a separate entrance.
2. No one is registered in the apartment.
3. The house is not in disrepair. 4. Neighbors living in adjacent apartments do not object to the removal of this apartment from the housing stock and are ready to confirm their consent in writing.
5. The scope of activity of the future company is permitted by SNiPs (when using the premises after its transfer as non-residential premises, fire safety requirements, sanitary and hygienic, environmental and other requirements established by law, including requirements for the use of non-residential premises in apartment buildings, must be observed).
If the apartment being removed from the housing stock meets all of the above requirements, then you can begin to prepare the documents.
Documents required for the removal of premises from the housing stock
To transfer residential premises to non-residential premises, the owner of the premises must provide the following documents to the local government:
1) an application for the transfer of premises, indicating the profile of the future non-residential premises;
2) title documents for the premises being transferred;
3) a plan of the premises being transferred with its technical description (technical passport of the residential premises);
4) floor plan of the house in which the premises being transferred are located.
If an entrepreneur envisages carrying out redevelopment, redevelopment or other work necessary to use the premises as non-residential, before contacting the housing committee of the mayor's office, he must prepare a working draft for the redevelopment and (or) redevelopment of the transferred premises, prepared and executed in the prescribed manner .
If all documentation is in order, the materials are submitted to the interdepartmental commission for consideration.
Based on the results of consideration of the provided documents, the body carrying out the transfer of premises makes one or another decision on the issue of removing a specific object from the housing stock.
A negative conclusion can be issued only on the grounds provided for in Article 24 of the Housing Code of the Russian Federation.
In case of a positive decision, a corresponding order of the mayor is issued, on the basis of which the entrepreneur is notified of the decision made - according to legislative norms, 45 days are allotted for this procedure. Three more days are provided for notification of owners of premises adjacent to the property in question.
A document notifying the transfer of residential premises to non-residential premises is the basis for using the transferred premises for non-residential purposes, and the commissioning of the premises is not required. Acceptance for operation of the transferred premises is carried out only in the case of redevelopment, reconstruction or other work necessary to use the premises as non-residential (it is noteworthy that previously this stage was necessary in any case).
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The procedure for withdrawing from the housing stock has been completed, but a very important final stage remains: it is necessary to secure ownership of the property, taking into account the changed status of the premises. The documents obtained as a result of the withdrawal from the housing stock will serve as the basis for registering ownership rights with the Institution of Justice, now for non-residential premises.
The judicial method is used when the issue cannot be resolved administratively. Most often, entrepreneurs who have already redeveloped the premises and are using it as non-residential, but have not formalized this legally, resort to legal action.
When all the documentation is ready, you need to submit it to the district administration; in Moscow, this is handled by the Department of Housing Policy and Housing Fund. The administration is given up to 50 days to make a decision on the possibility of transferring the premises to non-residential use. In case of refusal, the decision must be justified by an article of the Housing Code of the Russian Federation, however, if the documentation is in order and all the conditions listed above are met, there will be no refusal. A positive decision is accompanied by an order, of which the entrepreneur is notified within 45 days.
A document notifying the transfer of residential premises to non-residential premises is the basis for using the transferred premises for non-residential purposes, and the commissioning of the premises is not required. Acceptance for operation of the transferred premises is carried out only in the case of redevelopment, reconstruction or other work necessary to use the premises as non-residential (it is noteworthy that previously this stage was necessary in any case).
If an entrepreneur envisages carrying out redevelopment, redevelopment or other work necessary to use the premises as non-residential, before contacting the housing committee of the mayor's office, he must prepare a working draft for the redevelopment and (or) redevelopment of the transferred premises, prepared and executed in the prescribed manner .
To transfer a residential premises to a non-residential property, the owner (his authorized representative by power of attorney) must provide a package of documents to the body carrying out the transfer of premises in Moscow, for example, the Department of Housing Policy and Housing Fund of Moscow. Here is a list of documents required to start the procedure:
There is a general procedure for transferring residential premises to non-residential premises, fixed in the Housing Code of the Russian Federation; details of the process can be found in the acts of the bodies of the constituent entities of the Russian Federation, since this issue falls within their competence. Let us dwell on the general procedure for transferring residential premises to non-residential premises.
It is now clear that transferring an apartment to a non-residential property has not only obvious benefits in the form of a sevenfold profit, but also unpleasant disadvantages. For the expected profit to become a reality, several years must pass, so the owner of the premises needs to be patient.
- the apartment is not on the ground floor of the building and there are living quarters underneath it;
- someone is registered in the apartment;
- your future activity in some way contradicts the requirements of fire, sanitary and hygienic or environmental safety;
- it is not possible to organize a separate entrance to the room, different from the common staircase.
According to the Housing Code of the Russian Federation (Article 22. Conditions for transferring residential premises to non-residential premises and non-residential premises to residential premises), in order to formalize the removal of premises from the housing stock, you will need to collect the following package of documents:
5. The body carrying out the transfer of premises, no later than three working days from the date of adoption of one of the decisions specified in part 4 of this article, issues or sends to the address specified in the application to the applicant a document confirming the adoption of one of these decisions. The form and content of this document are established by the federal executive body authorized by the Government of the Russian Federation. The body carrying out the transfer of premises, simultaneously with issuing or sending this document to the applicant, informs the owners of the premises adjacent to the premises in respect of which the specified decision was made about the adoption of the specified decision.
9. The completion of the reconstruction, and (or) redevelopment, and (or) other work specified in Part 8 of this article is confirmed by an act of the acceptance commission formed by the body carrying out the transfer of premises (hereinafter referred to as the act of the acceptance commission). The acceptance committee’s act confirming the completion of the reconstruction and (or) redevelopment must be sent by the body carrying out the transfer of premises to the body or organization that carries out state registration of real estate objects in accordance with the Federal Law of July 24, 2007 N 221-FZ “On State Real Estate Cadastre" (hereinafter referred to as the Federal Law "On the State Real Estate Cadastre"). The acceptance committee's act confirms the completion of the transfer of the premises and is the basis for using the transferred premises as residential or non-residential premises.
This list, depending on the property that is planned to be removed from the housing stock, may change and expand. For example, when constructing a separate building with a plot, the results of a topographical survey and a layout diagram of the facility, agreed upon with the Department of Architecture and Urban Planning, will be required.
Transferring premises from residential to non-residential is a long and complex process that requires costs, both material and physical. For more information about the issues that you will have to resolve during the paperwork process, as well as useful tips on this topic, read the article “Recommendations of a specialist for removing real estate from the housing stock . Do you have enough time and energy to run through authorities for more than six months, stand in line, collecting a lot of all the necessary documents?
Converting residential premises to non-residential premises is a very profitable investment in real estate. This service is in demand among entrepreneurs purchasing residential property (an apartment on the lower floors of a high-rise building or a separate house) in order to place a store, office, hairdresser, computer club, etc. It is prohibited by law to use residential property for commercial purposes, so translation in such cases is required.
An equally important factor is that the removal of an apartment from the housing stock can only be carried out with the written consent of the neighbors. In addition, housing cannot be converted into a collection point for glass containers or non-ferrous metals, a sauna, a bathhouse, a funeral agency, a dry cleaner, etc.
But even at this stage all procedures do not end. You will need to contact the BTI with a request to measure the new premises. Then the State Commission approves an act according to which your apartment will be allowed to be used as a non-residential property. And finally, at the city hall you will receive permission to move the apartment into non-residential premises, and at the BTI you will be given a new plan.
Before converting an apartment into a non-residential property, the owner initially needs to realistically assess the attractiveness of the apartment's location for tenants, the development prospects of the area, its infrastructure, the availability of parking zones, transport links, distance from the center and much more. If you have made the final decision, then by contacting our office for help, you will receive fully qualified support in carrying out this procedure in accordance with the stages regulated by law.
- At the time of application, you must be the sole owner of the apartment intended for change of legal status.
- The apartment should not be mortgaged or under arrest.
- Documentary confirmation is also required that no person, including the owner, is registered in this apartment.
- This procedure is not carried out if the residential property is recognized as unsafe and requires major reconstruction and repair work.
- The change in legal status applies to all premises of individual apartments.
- The property must be located on the ground floor. If the property is located above, the legal status of the apartment can be changed only if the premises located underneath are non-residential.
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Great article 0
What decision can be made?
There are 2 solutions:
- permission to transfer premises from residential to non-residential;
- refusal to transfer.
In case of refusal, a person can either correct the deficiencies and re-apply, or go to court. The second option makes sense only if the person is sure that he was refused without reason. In some situations, refusal completely ends the matter. This happens if it is impossible to transfer the premises to non-residential (for example, it is located in a rented house).
And if the transfer is allowed, you can begin redevelopment and repair work. But it is necessary to act in accordance with the project, because after some time inspectors will come to the premises.
Transferring an apartment to non-residential use
These are the three most common reasons why premises need to be transferred to non-residential use. But do not forget that this procedure can be quite costly for you in terms of time and money: transferring real estate to non-residential stock on your own will take from several months to one year. To speed up and simplify the process, it is best to hire professionals, but this will cost more.
If, after reconstruction, your premises encroach on the public space of the house, you will have to obtain the consent of all residents of your house. The transfer of residential property to non-residential property is carried out on the basis of Articles 22-24 of the Housing Code of the Russian Federation, so carefully read Chapter 3 of the Housing Code of the Russian Federation. https://kzrf.ru/gilkrf_head_03.html
05 Jul 2020 glavurist 333
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Deadlines
The decision to transfer residential premises to non-residential premises or to refuse transfer is made within 45 days from the date of submission of documents to the authorized body. When submitting documents through the MFC, the countdown of the specified period begins from the moment they are transferred to the authorized body.
Notification of the decision is issued by the authorized body, MFC or sent to the applicant by mail within 3 business days from the date of the decision.
If reconstruction and/or redevelopment of residential premises is not required, notification of permission to transfer residential premises to non-residential premises is the basis for starting to use the premises as non-residential. If reconstruction and/or redevelopment is required, this notification becomes the basis for the commencement of the necessary work.
Sources
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- https://svoe.guru/nezhilaya-sobstvennost/nezhiloe-pomeshhenie/perevod/iz-zhilogo-v-nezhiloe/algoritm-dejstvij.html
- https://lazyduralex.ru/nedvizhimost-i-zhkh/perevod-zhilogo-pomeshhenija-v-nezhiloe-poshagovaja-instrukcija/
- https://101urist.com/nedvizhimost/nezhilaya/kommercheskaya/iz-zhilogo-pomescheniya.html
- https://101urist.com/nedvizhimost/nezhilaya/perevod/poryadok-deystviy-i-rashody.html
- https://svoe.guru/nezhilaya-sobstvennost/nezhiloe-pomeshhenie/perevod/iz-zhilogo-v-nezhiloe/stoimost-p.html
- https://balashiha.gorod.guru/perevod-v-nezhiloe