Transfer housing stock to non-housing: how to handle the formalities?

A demand for commercial real estate in Ukraine is growing with the development of the business. In accordance with the law, the citizens of Ukraine have the right to administer their property and perform any actions with it freely. This is where the curiosity arises - is it possible to transfer the acquired premises from housing to non-housing stock?

In this article, we will elaborate on each document and each step that needs to be obtained and passed for such a procedure.

Related article: How To Check A Real Estate Developer: What You Need To Know When Buying An Apartment?

What documents are needed to transfer the residential premises in non-residential category?

The application for transfer of the residential premises to non-residential fund

Although, the application has a clearly defined form and shall be drawn up on the basis of a template, it is better to leave the functional purpose paragraph blank.

Why should you avoid this paragraph?

Answer: Previously the property could be transferred from one category to another only after the determination of its functional purpose, which could delayed the transfer process for years. Today, this requirement is no longer relevant, but the applications still contain this paragraph. So, if you want to somehow reduce the premises transfer period - it is worth learning about such procedural peculiarities.

Technical passport for an apartment and the right of ownership.

These documents can be obtained at the Bureau of Technical Inventory. The process itself is not too complicated, but it can take quite a long time and delay the whole process. You can learn more about this procedure on our Service page.

Obtaining a technical conclusion on the premises.

This document shall be made at the intersection of the construction and legal areas, so even if you use the services of a person with specific knowledge in the field of construction to obtain the design or technical documentation, it’s worth applying to a qualified lawyer who can check the documents for legal relevance. A technical conclusion, for example, can be drawn up in accordance with the building regulations, but using illiterate legal language, which will not meet the requirements of the registrars of ownership rights.

In addition, they may sometimes ask for a certificate confirming that no one lives in the house and that the owners of  the house don’t mind the transfer. The problem is that neither the requirement for approval of such documents, nor the form in which they should be submitted, is specified. However, they can still be required.

Legislative requirements and the list of documents, as well as the transfer procedure, have been greatly changed over the past 10 years. In addition, the procedure may differ in each region, as the local regulations are different. If you want to properly understand how to transfer the residential premises in non-residential category as quickly and efficiently as possible, it is better to consult with a lawyer.

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When can’t the residential premises be transferred in a non-residential category?

In case:

  • the premises are in disrepair;
  • the apartment is under attachment or other type of restriction;
  • the premise is a monument of architecture.

However, there is also a flip side to the coin: in some cases it is possible to run a business without transferring residential property into a non-residential category.

This may become an interest of digital specialists: programmers, designers, marketing specialists, etc. In fact, the law of Ukraine prohibits only the “industrial” types of activity to be carried out in residential premises. In other cases, you can safely work at home and equip your apartment as an office. This statement is confirmed by practice, namely, the decision of the Kyiv Court of Appeal of 12.02.13 on the case No. 22-2217 / 13p.

The Code of Ukraine on Administrative Offences provides for penalties for not transferring residential premises in a non-residential category. You can also be held liable for violations of sanitary rules or fire regulations.

Therefore, even if the procedure seems difficult or you are afraid of the need to spend a lot of time in queues to state authorities, it does not mean that you need to leave things as they are and hope that no inspection will knock at your door. A real estate lawyer will solve your problems quickly and easily, which is likely to save you money in the future.

Do you want to transfer residential premises in a non-residential category? We can do this!

Publication date: 20/12/2019

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