How to determine the area of an apartment?
Very often real estate buyers ask the following questions:
By a notary deed, what is included in the area of the property? In the offer it says: “area” 120 sq.m. When we look at it the apartment looks smaller? Where does the difference between the area stated in the offer and the area stated in the notary deed come from?
What is the “actual area” of a property and what is included in it:
- The “actual area” of a property is the area, confined by the surrounding walls of neighboring properties. If the outer walls are open (windows, terraces) the area of the wall is included in the “actual area”.
- If the outer walls are not open only a half of their area is included in the “actual area”. The other half is added to the common parts of the building. For residential buildings consisting of two or more sections, separated by gaps on the floor space of the adjacent object covers only half the thickness of the wall to the gap. The remaining area is added to the common parts of the building or section.
- When the surrounding wall is internal, only a ½ of its thickness(area) enters the “actual area” . The rest area is added to the common areas, if located on the staircase side, and when a wall serves as a boundary between two properties – it is added to the area of an adjacent property.
- In August 1991 the “Regulations for determining market prices of underlying real estate” was accepted. According to Art. 30, § 2 of this Act, to the built-up area of the dwelling (studio) is added the whole area of balconies, loggias, verandas and terraces, as measured by their external shape design.” To find clarify the last paragraph we add a note from the additional provisions the Spatial Planning Act § 5, item 30, which defines a flat: “This is a set of premises, covered and / or open spaces, functionally and spatially combined into a whole to meet the housing needs” . To the dwelling areas are to be added the areas of the individual rooms located in the under-roof space of buildings with a sloped roof and the status of living quarters designated for use by owners.
Each property in an apartment building has an undivided percentage of the common areas – staircases, corridors and elevators. The shares of individual owners in the common areas are proportional to the the built up areas of the properties they own. Common areas are generally inseparable , meaning they can not be acquired by prescription or transferred separately from the property to which they belong.
In the notary deed of any residential property is entered the floor space of the property and a percentage of the common parts belonging to it.
In the so-called “New construction”, especially in periods of increase in prices of real estate and construction boom, investors and builders begin to include the common areas of apartments, in the residential area. A new concept of space is born – a “common area”, which is the built up area of the property + the ideal size of the parts of the building, which are owned by the property. Thus in the demand for reasonably priced housing, the buyer does not realize that his proposed price per square meter of living space is misleading and not real. This misleads the buyers and is a peculiar element of unfairness.
Until 1991, in the property records, the floor space is calculated as the sum of the square surfaces of all rooms, the thickness of the walls +1 / 4 area of balconies, loggias and terraces So actually we have two options of price formation per one square meter in the residential area: in the “old” and “new construction”.
In more recent history the real estate market has witnessed a notable case, when some builders and investors include the basement area to the built up area of the property they are selling.
In our practice we see the following options: The notary deed for ownership of an apartment was issued in 1980 . The actual size of the dwelling is calculated by the regulations enforced in that year . In 1998 the owner of the apartment calculates and captures the apartment and finds out that … His apartment is bigger! The expert who makes the calculation and capturing adds to the old home three quarters of the terrace area This entails an obligation to declare the property in the NRA, respectively there comes an increase in property tax and waste tax, but on the other hand can lead to an increase in property price in a possible sale, if the price is calculated per square meter.
Calculating the price of the apartment is not trivial, but the most important thing is whether the property you choose – meets your requirements, also in terms of price. But whether the the announced price is an absolute value calculated divided correctly by the built-up area or not – affects only the product price per square meter that we use to compare between offers.