Introduction
Apartmentation of real estate / houses / buildings / facilities represents a key legal and technical process by which one real estate, most often a residential or commercial building, is divided into separate independent units – apartments, business premises, garages, and other functional units. Each of these units receives its own legal status and can be used, sold, rented, or encumbered with a mortgage independently.
In practice, apartmentation is an indispensable step for all owners who want to clearly define ownership of parts of the facility, especially in cases of co-ownership or investor construction. Without apartmentation, real estate transactions are hindered or even impossible.
This guide provides a detailed overview of the apartmentation process, legal bases, technical requirements, costs, and benefits.
What is Apartmentation of Real Estate / Houses / Buildings / Facilities
Apartmentation of real estate / houses / buildings / facilities is a process by which:
- a building is divided into separate parts (apartment units)
- common parts of the building are determined
- co-ownership shares are defined
- a legal basis for registration in the land registry is established
The result of apartmentation is a document known as the apartmentation study, which serves as the basis for registration of separate parts of the real estate.
When is Apartmentation Necessary
Apartmentation of real estate / houses / buildings / facilities is necessary in the following situations:
- when multiple persons own one real estate
- when a building is divided into apartments for sale
- in new construction before selling apartments
- in cases of inheritance and division of property
- in legalization of facilities with multiple units
- when apartment ownership is to be established
Without apartmentation, it is not possible to clearly define which part of the facility belongs to which owner.
Legal Basis for Apartmentation
Apartmentation of real estate / houses / buildings / facilities is based on current laws on:
- ownership and real rights
- land registries
- construction and spatial planning
In Bosnia and Herzegovina, this process is regulated by entity laws, but the essence is the same – it is necessary to prove:
- legality of the facility
- actual state on the ground
- functional unity of each unit
What is an Apartmentation Study
An apartmentation study of real estate / houses / buildings / facilities is a technical-legal document that contains:
- graphical representation of the facility (floor plans of all floors)
- marked separate parts (apartments, business premises)
- areas of all units
- description of common parts of the building
- calculation of co-ownership shares
The study must be prepared by an authorized expert (architect or civil engineer), often in cooperation with a geodetic engineer.
Conclusion
Apartmentation of real estate / houses / buildings / facilities is a key step for legally regulating ownership, especially in buildings with multiple apartments or business premises. This process enables clear definition of ownership rights, easier real estate transactions, and increased market value of the property.
Although the process may require time, documentation, and expert support, its long-term benefits are undeniable.
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