In an attempt to benefit from the ever-changing needs of the real estate market, many real estate owners and investors seek to change the use of their property in order to utilize it in a better way. On the other hand, potential buyers are looking for profitable investments in real estate, the value of which is expected to increase if their existing use changes.
Change in use is also a useful tool for urban planning. New uses in long-abandoned properties can renew degraded areas of the urban landscape. Our law firm has repeatedly dealt with relevant complex cases of change in use of buildings in Athens and Thessaloniki.
Conversion of commercial real estate into residences:
Most owners are looking for solutions to the problems that arise when converting commercial property (offices, shops, warehouses) into residential properties. In particular, the implementation of the necessary modifications, so that a property can be used as a residence, has been one of the most important issues in the past, due to delays in the procedure of issuing the necessary permits.
Recent improvements in the urban planning legislation, have facilitated the modifications inside the property, so for its new use to be served. Today, interior design and change in use, for which, according to current legislation, a building permit is not required, can normally be carried out with the so-called “small-scale permit”.
Change of urban use of special-purpose buildings:
However, there is an increased interest in changing the use of larger properties, which in fact are special exceptions and have been erected after a derogation from the general requirements and restrictions that apply in the area where they are located. Given that these exceptions aimed to serve the purposes and uses specified in their construction permits, complex queries often arise as to whether or not, and under what conditions it is legal to change that uses.
Among other things, of high importance, remains the issue of the conditions under which it is legal to change the use of tourist accommodation, which has been erected in derogation of the general rules. As it is clear from the texts concerning the planned amendments to the Greek New Building Regulation, the relevant dispute as to whether more lenient or stricter regulations are implemented, as provided by the older General Building Regulations, is finally resolved in favor of the former.
It seems it is understood that extremely large buildings, which were erected in the past, in order to serve specific purposes and needs, it is now impossible to maintain their initial use, that must encounter modern requirements, so these properties do not end up in unused ruins.
Change in use of a building:
In the case of properties that are part of a building, in addition to the conditions provided in the urban planning legislation for the legal change in use, there may be restrictions from the obligations of each owner towards the other co-owners. Such restrictions often prevent changes in the use of the properties, while the owners can be led to litigations for years as a result of breaches of the relevant obligations.
Change of urban use and building regulations:
A crucial factor in the case of a building is the regulation. If the latter does not exist or does, but there are no prohibitions concerning the use of the properties, then changing in use of each of them is in principle permissible, provided that it does not damage the other properties and the building. Of course, for modifications in common parts of the building, to make the new use possible, the consent of all co-owners is required.
Legal issues are more complicated when there is a building regulation, which sets restrictions on the use of separate properties. Changing the relevant terms of the regulation usually requires the consent of most of the co-owners and is therefore particularly difficult from a practical point of view, especially when it comes to old buildings belonging to many co-owners. The various problems that may arise in these cases, of course, affect the value of the property. The risk assessment requires a detailed inspection of the legal status of the property in which the owner’s attorney must proceed. In this context, the urban planning offices already ask for opinions-certificates of legal advisors/solicitors, regarding the content of the building regulations, especially in cases where the further separation of an apartment or a floor is
We offer high-quality and full legal support to investors coming from both EU and non-EU countries. It is in our everyday practice to solve legal issues on this field, as also to consult our clients how to increase their benefits and profits.
