Residential and Non-Residential Real Estate Difference

Is a garden house a residential or non-residential premises?

Based on the above, a garden house can be considered both a residential and non-residential building, it all depends on its condition, arrangement and many other factors. Until 2021, the concept of “garden plot” was divided into several others. It was allowed to build both residential and non-residential buildings. And if the building was at one time registered as residential, then after 2021 no amendments are required. The house will automatically receive residential status.

On the other hand, if the house is being built after 2021 or has not previously been registered as residential, it will first have to be given the status of a residential building. Otherwise, you will not be able to register in it.

Residential and non-residential premises: what are they and for what purposes are they suitable? Let's deal with it wisely

• signs of their isolation;
• attitude towards real estate;
• purpose - not for human habitation, but to ensure social or production purposes;
• location - in residential and non-residential buildings, which distinguishes them from buildings;
• suitability for use in accordance with the requirements of regulatory documents.

• the exercise of the right of ownership, disposal and use of residential premises must be carried out in accordance with its purpose and limited to its limits;
• it is available to the owner of residential property to provide it for use to other persons on contractual rights of lease, lease, or transfer it for free use on the basis of the letter of the law;
• the owner’s responsibility is to maintain personal real estate and common property in the apartment building in accordance with the standards;
• the homeowner must respect the interests of his neighbors;
• It is the responsibility of the owner of residential property to properly manage MSW (municipal solid waste) in accordance with the requirements of housing legislation.

What is the best way to register a country house?

If the country house is already registered as a residential building (until 2021) and the only problem is to give it an address (and get the opportunity to obtain permanent registration), then it is enough to contact the local administration and demand that a real address be assigned to this property. Usually this is done on demand.

If the house is not yet residential, you will have to first recognize it as such and only then require an address to be assigned.

Procedure

1. Order a technical report. Since a commission is not appointed to inspect the house and the decision is made only on the basis of the documents provided by the applicant, such a conclusion from any qualified expert who has all the necessary licenses is mandatory. The conclusion indicates all the basic information with which the administration can decide whether to consider a given house residential or not.
2. Prepare all documents (see sample list below).
3. Submission of documents and applications to the MFC (My Documents) or local administration.
4. Waiting and receiving a decision.
5. Making changes to Rosreestr.
6. Request to assign a house address.

Documentation

The main point in the procedure for recognizing a house as residential is contacting the administration or the MFC. To do this you need a certain list of documents:

• Expert opinion regarding the condition of the house.
• Application to the MFC or local administration (filled out on site).
• Passports of all property owners.
• Notarized consent of all property owners to change its status.
• Permission from the guardianship authorities if there are minors among the co-owners.
• Extract from the Unified State Register of Real Estate.
• Technical passport and cadastral passport.
• Legal documents.

Expenses

Despite the fact that the procedure for transferring a garden house to residential status is formally free, in fact you will have to incur some costs associated with the preparation of documentation and subsequent registration of changes:

Deadlines

The timing largely depends on the applicant himself, but there are some points he cannot control:

• Drawing up a technical report: up to 3 weeks (less often, more).
• Receiving a decision from the administration: up to 45 days from the date of submission of all papers.
• Registration of changes in the registry: up to 2 weeks.

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How to find out whether a residential building is residential or non-residential

It must be permanent. You will also need to copy the document that verifies your identity. A receipt indicating payment of the state duty may also be added to these papers. It is worth noting that the renovation of a country house can be done in two ways. In particular, you can file an appeal to the court.

If the house has undergone redevelopment, you will need to submit design documentation. The person making the appeal will have to write a statement containing the purpose. In particular, you can indicate that you need to transfer your country house to the category of residential premises for the reason that you want to live in it on a permanent basis and are registering there.

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What are residential and non-residential premises

Real estate is usually divided into residential and non-residential. The first includes premises where people legally live: apartment buildings, dormitories, private houses. The housing stock also includes hotels.

Non-residential property is most often used for commercial or public purposes.

The need to transfer housing from one fund to another arises for many: for entrepreneurs who bought housing in a house for a store or for conversion into an office.

If such a need arises before you, there is no need to get lost. There is a possibility of transferring the apartment to another fund.

Residential and non-residential premises: what are they and for what purposes are they suitable? Let's deal with it wisely

A dwelling - an apartment, part of a household or a private house, due to its main purpose, must be located in a residential area and be in good technical condition. Building structures must provide load-bearing capacity for the safety of people permanently staying in housing, and must not have destruction or damage.

The main functions of the clinic are served by auxiliary spaces of the cloakroom, corridors, toilet rooms, lobby, etc. In the rented premises of the institution there are other auxiliary isolated areas, the purpose of which differs from the main direction of the entire non-residential facility.

Why translation is needed

Transferring your home from residential to non-residential and vice versa may become necessary for many reasons.

Most often, businessmen convert purchased apartments into shops, pharmacies, restaurants and cafes, and offices.

The status of residential premises is needed because only in it you can register and live too.

If you decide to convert your property to non-residential use, consider whether this process can be avoided.

According to the Housing Code, Article 17, it is possible to engage in commercial activities in a residential area in some cases, under which the following conditions are met:

• Your house and apartment neighbors will not suffer from your activities;
• The house in which your home is located does not belong to a dilapidated building;
• A potential entrepreneur is registered in the area where he plans to do business.

However, in most cases they still prefer to change the status of housing, and this has its advantages.

The main benefit of the owner who transfers his apartment to non-residential stock is that it becomes more expensive by about 20% when sold.

But here you may encounter another difficulty: will you be able to sell your non-residential property later? How interested will an entrepreneur be in this? So, before you run for profit, you need to calculate all the risks.

The downside for you here will be the wasted time on paperwork and searching for buyers.

While the property is idle waiting for a buyer, you will have to pay utility bills, which are approximately twice as high for non-residential premises . You will also have to pay property tax , namely 2.2% of the residual value of the premises every year.

That is why the translation is carried out by the entrepreneurs themselves who bought housing.

Housing or non-housing – that is the question

In order for non-residential premises in a residential building to bring good profit, it must be in the “right” place and be liquid. “The success of commercial real estate depends on what area and in what specific building it is located, how beneficial this building is in terms of pedestrian and vehicular traffic, and how close it is to the metro,” says Maria Kondakova, head of the commercial real estate department at Est- a-Tet. In demand among tenants and marketable non-residential premises are located in central areas (they are used not only for shops and consumer services, but also for offices), near train and metro stations, on streets with busy traffic, especially if these streets are occupied by the majority of local residents flocks to the nearby metro. Moreover, greater profits can be brought by areas where citizens with a higher social status and better material opportunities live, i.e. not very distant from the center - within 2-3 stations from the Circle Line, and located on prestigious routes. “In general, more promising (besides the Central Administrative District - Ed.) are densely populated areas with old buildings, where new residential complexes are being actively built today,” believes Konstantin Prosin, head of the Sevastopolskoe office.

From residential to non-residential: yes or no? The main reason why owners of apartments on the ground floors are thinking about converting them to non-residential real estate is the expectation of greater profits from the sale or rental of the property. Indeed, commercial premises may turn out to be more profitable, especially since apartments on the ground floors are usually 5-10% cheaper than housing located higher up. Actually, this is the main advantage of converting residential to non-residential. According to Valery Aristarkhov, senior manager of the sales department of Realtor, in this way you can increase income from sales by even 20%. Evgenia Borzova, head of the commercial real estate department , believes that non-residential premises, even similar in location and characteristics to an apartment, cost 15-25% more. And according to Yuri Taranenko, director of the commercial real estate department of the RRG group of companies , the increase in value could be even 30-40%. Income from rentals, according to Valery Aristarkhov (“Realtorskaya”), is sometimes as much as 6-7 times higher.

28 Apr 2021 klasterlaw 58

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How to change the status of an area

Transferring an apartment to another fund and vice versa simply won’t work.

The Housing Code specifies a number of requirements, compliance with which is mandatory . If the listed conditions are not met, you can not count on changes in status.

In order for an apartment to become non-residential, you need to consider:

• If the area is more than 100 sq. meters, provide a second exit to the street;
• If the premises in which you plan to carry out your activities are located on the second floor or even higher, prepare for the fact that you will have to change the status of all the apartments that are located below. According to the rules, these square meters must also become non-residential;
• Provide all engineering communications;
• Check out of your home before starting the transfer procedure, because... no person can be registered in non-residential premises either on permanent or temporary terms;
• Legalize all redevelopments.

Remember that premises located in a building classified as a cultural heritage site cannot become non-residential.

In addition, only the owner has the right to change the status.

You cannot make non-residential the area where you live under the terms of a social tenancy agreement.

Not everything is so simple with the transfer to housing stock. It must also meet certain requirements:

• The building in which non-residential premises are located must have durable structures. It also should not be classified as an emergency fund or subject to reconstruction or demolition;
• The premises must be absolutely safe and equipped in such a way that future residents cannot be injured or injured. The same requirement applies to the adjacent territory;

All utility networks must be in order and suitable for use.

We are talking about heating networks, sewerage, water supply and electricity. Utilities located in the house must also meet safety requirements.

When converting to a living space, the owner will have to think about the height of the ceilings, the concentration of harmful substances in the air, the number of floors of the building, and sound insulation. All this must also comply with the standards that were determined by the Housing Code.

In addition, during the transfer, no matter to which fund, the property should not be encumbered with anything : debts, loans, etc.

We live in a non-residential

Once you've converted your apartment into non-residential space, don't expect to be able to live in it. Along with a change in status, residence rights are lost. The legislation here does not provide for any exceptions: neither the owner, nor his relatives, nor loved ones can live in such a place.

You will no longer be able to register and obtain a residence permit at this address in a non-residential area.

Although, of course, one cannot help but say that no one can forbid you to be in your office or store. Of course, they will probably not control how much you spend in non-residential premises.

You have the right to rent out such objects or simply own them.

What is the best way to register a garden house as a residential or non-residential building?

You will need to submit a document received from the municipality, which confirms the fact that the land has been transferred from one category to another, and the new category must allow the construction of residential buildings. You will need to contact the housing commission and receive a report that confirms that the building can be transferred to the category of individual housing construction. If the house has undergone redevelopment, you will need to submit design documentation. The person making the appeal will have to write a statement containing the purpose. In particular, you can indicate that you need to transfer your country house to the category of residential premises for the reason that you want to live in it on a permanent basis and are registering there. It must be permanent.

If the non-residential premises are located on a site that is classified as agricultural land, then before converting the dacha into a residential building, you will need to transfer the land from one category to another. The land in gardening partnerships must be located in the zone where buildings with residential purposes are being erected. Please note that only a few uses are permitted, these include:

Where to go for translation

Today, the procedure for submitting documents in many regions has been simplified thanks to Multifunctional Centers that operate on a one-stop-shop principle. In one place you can submit all documents, in some cases, order certificates and receive the corresponding document after all procedures are completed.

You will need with you:

• Application for transfer;
• Documents that confirm your right of ownership;
• Documents from the BTI: technical plan, technical passport, floor plan of the house;
• If, when changing the status, some kind of redevelopment is necessary, you are also required to provide a design for it.

You must find out whether you can transfer your premises to another fund or not within 45 days. This is how long it takes to review the application and check the documents provided.

Once the decision is made, the authorized bodies have three days to notify you of their consent or refusal. The relevant paper can be sent by mail or sent to the Multifunctional Center.

A notification can also be sent to your email.

Entering information about the transfer of a non-residential building into a residential one in Rosreestr. Procedure and deadlines.

The administration recognizes a non-residential building as residential within 45 days (according to regulations). Within 3 days, such a decision must be sent to the applicant in the manner specified in the transfer application.

As soon as the decision to transfer falls into your hands, you need to make the appropriate changes to Rosreestr.

To do this, simply contact Rosreestr with an application and attach to it a positive decision of the Administration on the transfer of a non-residential building to a residential one. There is no fee for this procedure.

If for the purpose of transfer work was carried out on remodeling/reconstruction of the house, then it may additionally be necessary to prepare a technical plan for the house (a specialist in your region will help you choose an online cadastral work calculator). In addition, the technical plan will also need to be accompanied by an acceptance committee report on the completion of the redevelopment/reconstruction (read about how to approve the redevelopment/reconstruction here).

Remember the little things

Whatever plans you make to transfer your apartment, there are also some nuances that will not allow you to implement them:

First of all, remember that only the owner is responsible for the use of the space. That is, if you decide to rent out the area where a store later appeared, and at the same time did not make it non-residential, you will have to be solely responsible for this.

All orders from law enforcement agencies will be issued in the name of the owner;

You have the right to use your apartment not only as a home address, but also as a legal address.

In order to conduct business from home, it is not necessary to collect documents and transfer the premises to another fund. The main thing is to follow the rules mentioned above.

This has its advantages: you can work from your own apartment, and the law does not prohibit you from living there.

However, you will still have to change the housing status if you plan to receive mass visitors;

• Be prepared for utility prices to skyrocket as soon as you carry out the procedure for converting residential to non-residential. After all, tariffs for sewerage, water and electricity supply, heating for commercial premises are much higher.

Where to invest: commercial or residential real estate

Sometimes apartments are mistakenly classified as housing stock. According to Russian legislation, this concept means “rooms consisting of two or more rooms with a kitchenette.” The definition appeared in official documents recently, from 2021. But according to the law, apartments are non-residential real estate with the necessary conditions for living. It is not possible to register at the place of residence by indicating the address of such housing. Utility tariffs are calculated as for commercial real estate.

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Since 2015, investors have begun to pay more and more attention to commercial real estate. The profitability of this area is higher than from renting out housing - 4-5% per annum, sometimes reaching 11-12% per annum. From an investment point of view, the most attractive are small class C offices (20-40 sq.m.) and street retail. The costs of purchasing a small office are almost comparable to the budget for an apartment, sometimes even less.

First of all, remember that only the owner is responsible for the use of the space. That is, if you decide to rent out the area where a store later appeared, and at the same time did not make it non-residential, you will have to be solely responsible for this.

This is a question that owners often ask when they want to redevelop their existing property for the place in which they plan to live. Also, people who have purchased a residential property sometimes think about turning it into an area for carrying out their activities.

How do the rights of owners differ between residential and non-residential premises?

They are not permitted to be converted for industrial production purposes.

This becomes possible if a number of conditions can be met:

Residential premises can be legally used as work offices, for example, by lawyers. This right is granted to them by Law No. 63-F3 “On advocacy and the legal profession in the Russian Federation” dated May 31, 2002.

If an entrepreneur rents housing in which he intends to conduct professional activities, he must obtain permission from the owner of the premises, as well as from all members of his family who have reached the age of 18. Theoretically, such a room could be a separate private house.

It is a common belief that non-residential buildings are represented only by entrances, elevators, attics, basements and other similar places. Often these include buildings in emergency condition. However, the situation is somewhat different.

If you collect all the previously mentioned signs of non-residential premises, you get the following picture:

1. This is necessarily real estate that is not intended for people to live in it.
2. It is registered on a specific land plot.
3. The place is isolated and has special boundaries.
4. There is a separate entrance.
5. The real estate does not contradict construction, fire and technical standards.

Rights and obligations of the owner of non-residential premises

If the use of NP is carried out on the basis of property rights, the owners are obliged to follow local laws and the Civil Code of the Russian Federation. The RF Housing Code says nothing about this.

For example, in Art. 210 of the Civil Code of the Russian Federation states that the owner bears the burden of maintaining the property belonging to him, namely:

1. Comply with fire and sanitary safety requirements.
2. Pay utility bills on time and in full.
3. Carry out repair work and eliminate accidents on utility networks located indoors.
4. Use real estate strictly for its intended purpose. If a grocery store is open, it may not sell chemicals or fireworks.
5. Maintain cleanliness.
6. Pay property taxes on time.

Note: Some regions have additional restrictions. For example, if stores selling alcoholic beverages can sell goods until 22.00, it is advisable for them to close at the same time.

Rights and obligations of a tenant of non-residential premises in an apartment building

Lease relations are regulated by § 1 part 2 of the Civil Code of the Russian Federation. The rights and obligations of the tenant must be specified in the lease agreement with the owner.

What are the rights and obligations of a tenant in a residential building:

1. He can use the facility during the term of the contract.
2. If during use defects are discovered that arose through the fault of the lessor, the tenant has the right to demand their elimination or a proportionate reduction in the rent.
3. Carry out repairs, including major ones, in agreement with the landlord.
4. Maintain premises in good condition.
5. Pay utilities.

Note! By law, the obligations and rights of the parties are always specified in the contract, so you need to read it first.

Differences between residential and non-residential premises

The most important difference is the purpose of purpose.

• it must have a separate entrance;
• and should not violate the overall architectural appearance of the building (Article 22 of the Housing Code of the Russian Federation).

In order for a local government body (usually a district administration) to recognize it as advisable to change the status of a premises from residential to non-residential, there must be sufficiently serious reasons. The owner of such a premises provides an impressive package of documents (including permits from sanitary, hygienic and fire services), and goes through a very troublesome procedure.

Keeping these important facts in mind, let us return to the rights and responsibilities of the owners of residential and non-residential premises of an apartment building.



Non-residential premises are parts of an apartment building, and their owners are participants in the common shared ownership of the common property of this building.

The difference between a residential and non-residential house on a summer cottage

To understand the difference between a residential and non-residential building, you need to consider the requirements that apply to residential buildings located on a garden plot. It is these parameters that distinguish these buildings.

Requirements for a residential building

A residential cottage (house) must meet the following requirements:

• Structural elements and fences must ensure the safety of the property of the owners and must not threaten their lives.
• All main communications must be connected (electricity, water, sewerage, gas, and so on). In some regions where it is not possible to supply, for example, gas or sewerage, this requirement may be partially ignored.
• The temperature inside a residential building in winter should not fall below 18 degrees.
• The air humidity inside the house should not be higher than 60%.
• The plot and the house itself must be registered as private property.
• There should be no encumbrance placed on the house and the plot.

Area of ​​premises of a residential building

In addition to the above, additional requirements are put forward for the area of ​​premises inside the house:

At the same time, the ceiling height in above-ground premises must be at least 2.5 meters, and in the basement - at least 2 meters.

These requirements can be partially ignored, but they cannot differ greatly from the stated parameters. Otherwise, it will be impossible/uncomfortable to use such premises.

How do the rights of owners differ between residential and non-residential premises?

• According to their purpose, non-residential premises are divided into industrial and non-industrial (schools, kindergartens, hospitals, shops, dry cleaners, cinemas, public utilities, etc.).
• By industry, non-residential premises are divided depending on their belonging to industrial facilities (metallurgical, fuel, chemical, engineering), electric power, etc. (about what industrial and production buildings are, what are the nuances of their operation, and how they differ from structures for other purposes, we discussed in this article).

What is the difference between residential and non-residential premises the rights of owners in SNT

• is part of the building;
• has a specific address (read about how a non-residential premises number is assigned during cadastral registration, which determines the location of an object at a specific address);
• is part of a non-residential fund;
• has a purpose that excludes use as permanent housing.

Based on the nature of use, non-residential premises are divided into main and auxiliary. The latter serve to ensure the normal functioning of the main areas.

According to the rules, these square meters must also become non-residential;

• Provide all engineering communications;
• Check out of your home before starting the transfer procedure, because... no person can be registered in non-residential premises either on permanent or temporary terms;
• Legalize all redevelopments.

Remember that premises located in a building classified as a cultural heritage site cannot become non-residential.

In addition, only the owner has the right to change the status.

You cannot make non-residential the area where you live under the terms of a social tenancy agreement.

Not everything is so simple with the transfer to housing stock. It must also meet certain requirements:

• The building in which non-residential premises are located must have durable structures.

However, they are provided in the same amount as to other apartment owners.



Owners of non-residential parts of the building are responsible for the proper maintenance of metering devices (meters). Their damage or failure must be promptly reported to the relevant service providers.

Transfer of non-residential property to residential premises

To change the purpose of an object you must:

• Contact the design organization to create a redevelopment plan.
• Collect a set of documents.

It includes a document of title, minutes of a meeting of residents, a project, a conclusion on the compliance of the object with the requirements established for residential premises, and a copy of the passport.

To transfer the premises, you must write an application and submit it with attached documents to the authorized authority. You will also have to wait 48 days for a response.

In cases where we are talking about residential properties in the form of an apartment, part of it or part of a residential building, as well as in all cases - about non-residential premises, such places are represented as a conditional object of real estate.

On the one hand, this is an independent property, on the other hand, it is part of another property. However, it does not have a direct connection with the land, that is, it is not registered on it separately from the entire building.

The use of non-residential space in a building is unthinkable without the simultaneous use of the building itself and, in essence, is associated with its use.

Important. Despite the fact that residential and non-residential objects have obvious differences, they act as real estate and the subject of transactions with it only in their completed and commissioned form.

• The ventilation supply must be autonomous and not connected to the general ventilation pipes of the house.
• Garbage storage and parking areas must be separate from residents' household waste storage areas.
• Sewage drains must also have their own separate drains that do not pollute the general sewer system of a residential building.
• Water supply and heating are provided from the common resources of the house.
• The general design of the facade should not stand out for its pretentiousness and pomp, and should coincide with the general architectural solutions for the design of the entire residential building.

Residential or commercial? What is the difference

Before you begin negotiations on the purchase of commercial real estate, you need to make calculations on how and how much you should earn from it. Will it be an apartment with beds or a 500 m2 retail outlet? How much will you have to invest in this premises in addition to purchasing it and how soon will you be able to exhale and make your first profit.

This sounds like an obvious fact, but there are many pitfalls in this topic - how to analyze a site for development, how to estimate the value relative to the market, how to rank significant infrastructure requirements depending on the real estate sector, how to make an accurate calculation of the expected profitability. We created the Smart Infrastructure service to minimize risks when investing in real estate and increase the return on investment.

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A bill introduced to the State Duma last summer was intended to clarify the status of the apartments. The authors proposed their criteria for residential and non-residential apartments as part of multifunctional buildings. There was even a procedure for transferring such objects from non-residential premises to residential ones. But for now, consideration of the initiative has been postponed. A new version of the law on the status of apartments is promised to be submitted to the State Duma this spring.

The head of the law firm, Maryana Balareva, answered these questions during the seminar “Apartments: legal status, taxation, features of transactions.” The seminar was organized as an educational seminar with information support from the BN.ru portal.