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All stages of the transfer of residential real estate to non-residential

This post outlines the different stages of the transfer of residential real estate to non-residential. It details the tedious process of conversion of a residential dwelling into a commercial property. It also emphasizes the importance of taking various legal and financial considerations into account before embarking on the change, such as involving an experienced real estate lawyer for legal advice, consulting with professionals who can evaluate the marketability of proposed built-outs, and researching existing zoning regulations. Furthermore, it highlights the advantage of doing business with a reliable and experienced real estate agent, the favorable terms of financing that can be obtained through tax equity, and the importance of doing due diligence before converting a residential property. This post is a valuable guide for those looking to convert a residential property into a commercial one.

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Despite all the difficulties and bureaucratic obstacles, it is quite possible to transfer residential premises to non-residential premises on our own. Our advice site will give you step-by-step instructions, following which you can change the legal status and purpose of your property.

Stage one – decision making

To begin with, you need to decide exactly whether it’s worth it to transfer an apartment to a non-residential fund at all. It may be easier to immediately rent a commercial space in your area. Or buy a non-residential premises on the first floor of an apartment building (apartment building). In addition, it is not prohibited by law to engage in certain types of entrepreneurial activity in residential premises. For example, for freelancing, provision of legal, accounting services, it is not at all necessary to transfer housing to non-residential premises.

Important! If you need a direct exit from the apartment to the street for doing business, then you need to change the status of the property.

You also need to think about these important points:

  • If the apartment is not privatized, then you will first have to spend two to three months on registration of property rights. And only then transfer to non-residential premises.
  • Do all apartment owners agree to make it non-residential? If not, nothing will work. The easiest way is if the owner is alone and he himself will deal with this process.
  • If there are minors among the owners of the apartment, the consent of the guardianship council, protecting the interests of children, will be required.

3D project of the entrance group of the building

You should also evaluate all the benefits that you will receive from the transfer of real estate to a non-residential fund. Is it advisable to invest in this and spend time, will the future business be profitable? Only after answering all these questions, you can proceed to the next stage..

Stage two – order a housing conversion project

Conversion of residential premises into non-residential premises is always associated with redevelopment. There will be a separate exit to the street, instead of a kitchen, an office or storage room will be equipped, and so on. All this must be planned in advance and a project drawn up. This can only be done by professionals, organizations belonging to specialized SROs. Their services cost money, but without the project, you can’t move on. Already having a redevelopment project in hand, it will be possible to obtain the consent of the other apartment owners in the MKD.

Project of converting an apartment into an office

The portal wrote in detail how to legally redevelop real estate for various purposes. This article is also described about the project, so we will not repeat ourselves..

Important! If the redevelopment of housing that has remained in the same status can be legalized after the completion of the repair, then in the case of transferring an apartment to a non-residential fund, this cannot be done! First, you need to agree on everything, obtain permits, and only then proceed with the demolition of walls and the arrangement of new doorways..

We are talking about the owners of apartments located above and on the sides of the premises, the status of which is planned to be changed. You need to get their written consent. The document is drawn up in any form, but you will need to indicate the passport data of the neighbors, the address and cadastral numbers of their apartments.

Collecting signatures of neighbors

Important! It is impossible to transfer an apartment located above the living rooms to a non-residential premises! If the apartment is on the second floor, it can be transferred to a non-residential fund only if there are commercial premises under it.

Of course, you cannot put pressure on your neighbors, threaten them! And the lawsuit will not work. Consent can only be achieved by persuasion, peacefully. Here you already need a project that you will show to your neighbors, assuring that the supporting structures of the house will not suffer.

Stage four – organize a meeting of apartment owners MKD

You need to enlist the support of the management of the HOA or the management company. Take a list of apartments from them and inform all the owners that a meeting of tenants will be held on a specific day, at a certain time. And on the agenda will be a change in the status of apartment number such and such. This must be done two weeks before the meeting. The safest way is to send registered letters to all owners or personally go around all the apartments, informing about the upcoming event. But in general, you can just hang up an ad at the entrance, the main thing is that the neighbors see it and come.

You will need to decide where the meeting will take place, choose a suitable room. The management of the HOA can also help with this. And make copies of all documents for the apartment, the status of which will be changed. Including copies of the project, according to the number of neighbors – each of them may require written information.

Stage five – holding a meeting of apartment owners in MKD

At the appointed time, the owners of apartments in the MKD should get together. In addition to your question regarding the transfer of real estate to a non-residential fund, they can discuss other topics. The most important thing for you is that a quorum is assembled and the meeting participants make a decision in your favor.

Important! To make a decision to change the status of one of the apartments, it is necessary to collect the owners of at least 50% of the area of ​​the entire apartment building. And 2/3 of the owners of apartments in your entrance. Otherwise, the voting will not be considered valid, you will have to collect tenants again. The quorum can be calculated by the organizing committee of the meeting, which usually includes the heads of the HOA, the management company, two or three residents of the house, representatives of the municipality.

Meetings of apartment owners in MKD

Again, you cannot put pressure on the meeting participants, forcing them to make a decision in your favor, allowing you to change the status of the apartment! But you can stimulate them. For example, using the following methods:

  • Promise to help in the improvement of the local area. Tell that you will spend money on several flower beds, put up benches and expand the playground.
  • Promise to carry out repairs in your entrance or improve the facade.
  • Promise to provide discounts at a new store, pharmacy, hairdresser that will open in your home.
  • Describe the benefits of transferring housing to non-residential premises. For example, now there will be a pharmacy in the house, no need to go far to get medicines. Or a mini-market with fresh pastries – also convenient.

You need to be convincing, in addition, to prove with the help of your redevelopment project that structurally the house will not suffer at all, everything is carried out according to the law.

After the end of the meeting and voting, a protocol is drawn up, in which the results are recorded. You will need it for further actions..

Stage six – appeal to municipal authorities

Now that you have a reconstruction project in your hands, the consent of all immediate neighbors, as well as most of the other apartment owners in the MKD, you can send with a package of documents to the municipal authorities. You can apply to change the status of real estate through the MFC. It is compulsory when submitting an inventory of the documents attached to the application. Separate documents, such as a floor plan of a house and an extract from the USRN, can be requested by the administration itself. But in general it is better to apply them immediately..

Store project on the first floor

Local authorities have 45 days to make a decision to transfer real estate to a non-residential fund, so please be patient. If you are refused, this decision can be challenged in court, unlike the refusal of neighbors.

Important! If the house is a historical or architectural object, you will additionally have to obtain permission from the regulatory authorities.

Stage seven – redevelopment, renovation

Only after the permission of the municipal authorities has been obtained, you can proceed directly to the repair of real estate. That is, to start implementing a reconstruction project developed by specialists at the beginning of the process of transferring housing to non-residential stock. It is necessary to comply with the requirements for the time of noisy repair work, not to disturb the neighbors once again and remove all construction waste.

Apartment remodeling

Stage eight – drawing up an act of acceptance of real estate and a technical plan

When all construction and repair work is completed, you need to invite representatives of the municipal authorities to the site. A commission will come to you, which will include representatives of the municipality, OGPN EMERCOM, Rospotrebnadzor, housing inspectorate, and other services. The commission must make sure that the work is carried out exactly according to the approved project. After that, an act of acceptance of the property will be signed.

Apartment converted into an office

Next, you need to draw up a new technical plan of the premises, taking into account all the alterations. This can only be done by a specialist – a cadastral engineer with a qualification certificate. You will have to pay for his services, as before for the reconstruction project.

Stage nine – obtaining an extract from the USRN

This is the final “paper” stage. With a new technical plan and an act of acceptance of real estate, you need to go to the department of Rosreestr or the MFC and write an application. Amendments will be made to the Unified State Register of Real Estate, and your apartment will officially become non-residential premises. This usually takes five to seven days. It is the extract from the USRN that will prove that you did everything legally, the property changed its legal status.

Obtaining an extract from the USRN

Stage ten – start of real estate exploitation

Now you can do whatever you want with your non-residential premises in the MKD. Sell ​​as a commercial object, rent it out, open a shop or pharmacy … There are many options, you can choose.

Non-residential premises on the ground floor

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Comments: 3
  1. Juniper

    Could you please explain the process and steps involved in transferring residential real estate to non-residential use? How does this transition affect the property’s legal status and any associated regulations?

    Reply
  2. Andrew Price

    Is there a specific legal process or procedure that needs to be followed during each stage of transferring residential real estate to non-residential use?

    Reply
    1. Chloe Dixon

      Yes, there is a specific legal process that needs to be followed during each stage of transferring residential real estate to non-residential use. The process typically involves obtaining the necessary permits and approvals from relevant local government authorities. This may include rezoning the property from residential to commercial or industrial, obtaining environmental clearances, and complying with building regulations. Additionally, the transfer of ownership may require executing a contract of sale or lease agreement, conducting due diligence, and registering the transfer with the appropriate land registry. It is important to consult with legal professionals experienced in real estate transactions to navigate these procedures efficiently and ensure compliance with applicable laws and regulations.

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