If you have decided to proceed with the purchase of real estate, inevitably you will come across various, often unfamiliar concepts, which it is good to clarify before taking this important step.
Whether you are a first-time buyer or an experienced investor, understanding the terminology is crucial to making informed decisions and avoiding potential pitfalls.
One of the topics that most commonly confuses buyers is that of common and ideal parts. Therefore, in this article, we will specifically examine the meaning of these concepts. What are the differences between "common parts" and "ideal parts"? How are they calculated, and what impact do they have on ownership?
Let's dive in and explore the world of real estate, and the concepts of "ideal parts" and "common parts" of the building.
What are the common parts of a building and what they include?
According to Article 38 of the Property Law Act:
In buildings where floors or parts of floors belong to different owners, the common areas shared by all owners include the land on which the building is constructed, the yard, the foundations, the exterior walls, the interior dividing walls between individual units, the interior load-bearing walls, columns, beams, slabs, staircases, landings, roofs, walls between attic and basement areas of individual owners, chimneys, the external entrance doors of the building and the doors to common attic and basement areas, the main lines of all types of installations and their central equipment, elevators, drainpipes, the porter's dwelling, and everything else that by its nature or purpose serves for common use.
In short, common parts are those that are used jointly with the other owners in a multi-unit building.
Common parts can be classified into two types according to their nature:
#Common parts in the building according to their nature
Common parts of a building are by their nature those parts of the building without which it could not exist as such. These are:
the land on which the building is built;foundations, external walls, internal partition walls between the different parts;the internal bearing walls, the columns, the girders, the slabs, the beams;stairs, landings, roofs, walls between attics and cellars of individual owners;chimneys, external entrance doors of the building and doors to common attic and cellar rooms;the main lines of all types of installations and their central systems;elevators;drain pipes, etc.
These parts are not independent parts of the building - they can exist only as common parts of the building and their purpose is not subject to change.
#Common parts of the building according to their purpose
Common areas by purpose - they are created and designed to provide additional amenities to the owners, users and occupants of the block. These can be:
warehouse;ground floor;yard around the building, etc.
There is the possibility of a change of use. As well as it is possible to become the independent property of one of the owners or third parties.
What are ideal parts?
By their nature, "common parts" do not have an independent character. Their purpose is for common use, therefore it is necessary to establish co-ownership.
Co-ownership is established by dividing these "common parts" among all owners of separate properties in the form of ideal parts. Or to put it another way:
"Ideal parts" means the percentage or proportion of the common parts owned by each property owner in the building.
And since ownership of property in a building is combined with ownership of the common parts in the same building (it is impossible to own property in a building without owning ideal parts), the notarial deed records not only the built-up living area of the property but also the percentage (or permille) of ideal parts of the common areas.
You, along with all other owners - each with their respective percentage - own all of the common areas. However, these common areas are not physically separate - you cannot choose specific 10 square meters, for example, and designate them as yours. That is why they are called ideal, rather than real.
How to determine (calculate) the ideal parts of common areas?
The ideal parts for each individual property are determined as a ratio of the sum of the area of the individual property and the storage areas attached to it, divided by the sum of the area of all individual properties and attached storage areas in the building. The resulting number is then converted into a percentage.
The formula is:
IP(%) = (BA/TA)*100
where:
IP(%) is the percentage of ideal parts of the common areas that belong to the property;
BA is the built-up area of the property;
TA is the total built-up area of the building.
Check out our blog post - How to calculate the square footage of a property?
After dividing the area of the property by the total built-up area of the building, we get the percentage of ideal parts that the owner of the property possesses. For example, the owner of an apartment with an area of 200 sq.m in a building with a total built-up area of 2000 sq.m, possesses 10% of the ideal parts of the common areas in the entire building. ((200/2000)100=0.1*100=10%)
The percentage of ideal parts directly affects the owner's right to participate in decision-making at the General Meeting, the amount of maintenance fees for the common areas in the building, etc.
In conclusion, understanding concepts such as "ideal parts" and "common parts" is crucial when it comes to buying or investing in real estate. These terms are an important part of the legal and financial framework that regulates property ownership and investments, and misunderstanding them can lead to costly mistakes and legal issues.
By understanding the meaning and calculations of "ideal parts" and "common parts", you can ensure that you are making informed decisions when buying or investing in real estate.
More from our blog:
Final steps when buying a property (Documents and stages before we get the property)
How to calculate the square footage of a property?
Summer - the best time of the year for buying a real estate (on the sea)
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