For many people, horizontal division presents itself as a solution to improve the management and marketing of properties. However, this concept is often confused with horizontal property, and many do not know all the necessary steps to carry it out correctly.
At Proddigia, we explain this concept so that you can understand the actors involved and in what cases it can be carried out. Let’s get started!
Definition and Concept
Horizontal division is the legal process that converts each part of a building, such as flats or commercial premises, into an independent property with its own registered title. This process defines the area and boundaries of each unit, as well as its participation in the common elements of the property, such as staircases, lifts, or facades. The result is that each resulting unit possesses exclusive rights over its private space and shared rights over the common areas.
Is Horizontal Property and Horizontal Division the Same?
It is important to distinguish between horizontal property and horizontal division, as each term refers to different aspects of the management and organisation of properties. On the one hand, horizontal property is the regime that regulates the coexistence of independent units in the same building. On the other hand, horizontal division is the process through which this regime is created by separating a property into several registered estates.
Who Carries Out the Horizontal Division?
The horizontal division can be carried out by various actors depending on the context and the situation of the property. Each of these actors plays a specific role in the process, depending on whether it concerns a building under construction, an existing property, or a property that is changing hands:
Property Developer
The property developer is a central figure in the development of new buildings. Their main function in the horizontal division is to coordinate and carry out the process from the start of the project:
Planning and Design
This professional works with architects and engineers to design the building and plan the horizontal division. In other words, they are responsible for creating an architectural project that defines the structure of the building, the individual units, and the common areas.
Preparation of Documentation
Before construction begins, the developer must prepare the necessary documentation for the horizontal division, including detailed plans and specifications for each unit. The project must then be approved by the competent authorities and presented before a notary.
Execution of the Project
During construction, the developer is responsible for ensuring that the building is constructed in accordance with the approved project and current regulations.
Sale of Units
Finally, the developer facilitates the sale of the individual units through the horizontal division by allowing each unit to be registered separately in the Property Register.
Owners
In the case of existing buildings, the horizontal division can be carried out by the current owners of the property. This is common in situations such as:
Inheritance
When a property is inherited by several people, the heirs may choose to divide the property into independent units to distribute ownership equitably among them.
Partial Sale
If an owner wishes to sell a part of the building, such as a flat or a commercial unit, they can carry out a horizontal division to clearly define the private units and common areas. As a result, the sale of each part of the property is facilitated individually.
Restructuring
In some cases, owners may decide to carry out a horizontal division to optimise the use of space or to update the management of the building. For example, this may include converting an old building into several flats or commercial units.
Single Owner
When a property is solely owned and the owner wishes to divide it into several units, they can carry out the horizontal division to create several independent properties with different purposes:
Restructuring for Sale or Rent
The property owner may decide to divide a large property into several units to sell or rent them separately. This is a common situation in large single-family properties that are converted into several homes or in buildings that are transformed into offices and commercial units.
Space Optimisation
In order to improve space usage, the sole owner may also carry out a horizontal division. But how can this be achieved? For example, a large house with ample land can be divided into several homes or units to increase profitability and usage.
Procedures and Documentation
Do you know all the documents and steps required to carry out a horizontal division legally? Here’s what you need to know:
Construction of New Buildings
Before beginning construction, it is necessary to develop an architectural project that details the structure of the building, the distribution of units, and the delimitation of common areas. This project must include detailed plans, technical specifications, and an accurate description of each private unit, as well as its participation in the common elements of the property, such as lifts, staircases, and recreational areas.
Additionally, the project must be submitted to a notary to formalise the intention to divide the property horizontally. This professional will review the documentation to ensure it meets legal and technical requirements before proceeding with the signing of the public deed.
Existing Properties
If the property is already in use and a horizontal division is intended, a meeting of owners must be convened to discuss and approve the division. The summons must be made in accordance with the community statutes and in compliance with current laws.
In this way, the aim is to seek the qualified approval of the owners’ meeting to proceed with the horizontal division. This involves obtaining the consensus of the majority or a qualified majority, as stipulated in the community statutes. This approval must be recorded in the minutes of the owners’ meeting, where the details of the division and the decisions made should be included.
Finally, a technical certificate prepared by an architect or a competent technician will be necessary, detailing the areas of each unit and their distribution.
Documentation
The following is a list of all the documents to be submitted to legally register the horizontal division:
Public Deed
As mentioned, the horizontal division must be formalised through a public deed signed before a notary. This document officially registers the division of the property into independent units and specifies the rights and obligations of each owner regarding the private and common areas.
What should be included in the deed? The detailed description of the property, the units, the participation in the common elements, and the corresponding share of participation for each unit.
Registration in the Land Registry
Once the public deed is signed, it must be submitted to the Land Registry for registration. This is an essential step for the horizontal division to have legal effects and for each unit to have its own registered estate.
Furthermore, by registering in the Land Registry, the cadastral and legal data of the property is updated, allowing each unit to be bought, sold, or mortgaged independently.
Cadastral Certificate
It is important to update the cadastre with the new cadastral reference for each unit resulting from the horizontal division. This ensures that each unit is officially recognised in the cadastre and allows for the proper management of related taxes.
To carry out the update, the documents of the horizontal division, such as the public deed and the technical certificate, must be submitted along with any other documents required by the cadastre office.
Turning Challenges into Certainties
Whether for new developments or existing properties, horizontal division offers a solution to improve property management and maximise property value. Knowing the necessary steps, the required documents, and the actors involved will enable you to carry out this process correctly and in accordance with the law.
At Proddigia, we provide information related to the real estate sector so that you are always updated with the latest information. If you wish to obtain our advice or are looking to sell or buy a property, please contact us so that we can assist you.
