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Perepelchenko Anatolii

Deputy Managing Partner

Lawyer, specializing in real estate, corporate, tax, civil and contract law, as well as litigation.

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Changing the purpose of the building

Perepelchenko Anatolii
Заступник керуючого партнера

Lawyer, specializing in real estate, corporate, tax, civil and contract law, as well as litigation.

Contact now

Changing the purpose of real estate

The relevance of the issue of changing the designated purpose of the immovable property remains unchanged. To explain the popularity of this industry, two main factors are distinguished:

Benefit in the economic environment. 

When changing the designated purpose of the immovable property for further commercial activity, namely, to receive income from renting or its further resale. In the real estate market, a non-residential property is valued much higher than a residential building.

The practical component.

Life situations are different, and the owners do not always have the funds to carry out commercial activities, therefore the most favorable way is to transfer such an object of non-residential stock back to the housing stock.

The change in the intended purpose must be carried out in accordance with the norms of the law.

Transfer of a real estate object from residential to non-residential fund

Very often premises / objects of non-residential fund are used for the purpose of carrying out commercial activities. Among the possible types of commerce are office space, shops with different purposes, or commercial offices.

Such premises are especially popular in densely populated cities or city districts, which makes it possible for the owner to monetize various activities that can be done in such a room. But, the first step in the implementation of such activities is to transfer the designated purpose of such a premises from residential to non-residential stock. This procedure is lengthy, below we will consider the stages of such a procedure:

  • An application is submitted to the architecture authority for further actions to transfer from residential to non-residential fund.
  • Development of technical and design documentation in accordance with applicable law.
  • Preparation and submission of a package of documents to the urban planning service.
  • Registration of ownership with a changed purpose.

The procedure for transferring real estate from non-residential to residential

To date, there is a tendency to reverse the change of the designated purpose from non-residential to residential, this trend may be associated with the lack of financial ability of the owner of the premises to conduct commercial activities. In this type of translation, difficulties of a different quality arise and the translation itself puts forward new requirements:

  • As part of such premises, it is necessary to have all the amenities for living, which are located in residential areas.
  • It is necessary to have supporting structures that meet all living requirements.
  • Also, the presence of communications in compliance with all legal norms.
  • Safety of living in this room.

To summarize all of the above, it is necessary to document and file correctly. This process does not exclude visits to numerous services.

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1 question

Do you have a title deed?

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No

2 question

Do you have permission from Housing bureau or the Association of Co-Owners of Apartment Buildings?

Yes
No

3 question

Do you have permission from the district improvement authority?

Yes
No
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