What is the Horizontal Division?
Table of Contents (8)
- What does "división horizontal" mean?
- Horizontal division in legal terms
- Types of horizontal divisions
- Procedures for horizontal division of newly constructed buildings
- Procedures for horizontal division of old properties
- What expenses does it involve?
- Other related questions
- What is needed to carry out a horizontal division?
The horizontal division is a legal act that consists of separating the structure of a property into several independent units. If you are researching the horizontal division, what it means, the procedures you need, or the cost, as Notaries in Barcelona we inform you about all of this in this article.
What does "división horizontal" mean?
Through a horizontal division deed, a property is legally divided into several units. This happens, for example, in a building that is divided into:
- Private ownership areas: Such as a flat, a garage, a storage room…
- Common use areas: Any non-private area (entrance hall, stairs…), as well as supporting elements, pipelines, cladding, etc. All of this is clearly specified in article 396 of the civil code. These areas belong to all the owners collectively. And each property grants a percentage of participation over the whole of the common areas.
The horizontal division is an essential resource for companies or businesses dedicated to the sale of properties, buildings or plots.
Horizontal division in legal terms
The horizontal division deed is a public and constitutive document, registered in the Property Registry. A single ownership entity becomes constituted as a community of owners.
The article 5 of the Horizontal Property Law regulates the elements that must appear in this document. It must contain detailed descriptions about the property as a whole. And also about the various individual properties and their respective participation quotas.
Types of horizontal divisions
- New building: the one related to the business of selling properties to divide the building into flats
- Old building: to divide a building into premises or apartments
- Horizontal property: belongs to the division of a horizontal or mixed building into common areas
- Real estate complexes or urban developments: in special cases, more complex legal figures can be used that fit the reality of the buildings that make up a complex, such as shopping centres, business parks or large housing developments.
The procedure varies depending on whether we are referring to a newly constructed building or a property that has been in use for some time.
Procedures for horizontal division of newly constructed buildings
It is essential to present the property project before a Notary. And it should have properly specified the various divisions and common areas. The procedure will most likely be carried out well before the works have been completed, as sales are usually made off-plan.
Procedures for horizontal division of old properties
The horizontal division of the old building requires the approval of the property owners' association and the terms established by its statutes. If it is necessary to carry out works to implement the new separation, a project must be drawn up that has the approval of a technician. This is a necessary step to obtain the licence for said work. Otherwise, a technical certificate stating the new divisions will suffice.
Finally, a Notary will be the one to process the horizontal division before it can be considered a public deed. This will be submitted to the relevant Land Registry and to the General Directorate of the Cadastre, which will assign the new references.
What expenses does it involve?
When you need to manage a horizontal division, you should take into account the following payments:
- Tax on Documented Legal Acts. The percentage varies between 0.5% and 1.5% (depending on the Autonomous Community) of the real value of the construction plus the land.
- Building permit (if applicable). Generally, a percentage of the total cost of the work.
- Registration fees at the Land Registry.
- Payment to professionals such as Notary, architect… should also be considered in the cost of the horizontal division.
Other related questions
Among the following we find the most frequently asked questions from our clients.
To obtain a copy, request it from the property manager or ask for a simple note of the property at the Land Registry.
It must be processed whenever it is desired to sell any of the indivisible parts of a building.
It is usually divided to structure a building. That is to say, the separation between floors, premises, storage rooms or parking spaces are divided into independent units that must be registered separately in the Land Registry, opening a registry sheet for each private element.
It is each of the independent units that make up a building and each one has a cadastral reference to be identified. This means that a flat forms an independent unit with a different cadastral reference from the commercial premises in the building, the garage, or the storage room.
Each private element of a horizontal property with its own registered estate can be sold on its own.
Segregation and horizontal division are different legal acts. Segregation is used to transform part of a registered property into another. That is, people who own a large flat and want to make smaller ones from it to sell or rent them.
Such separation must be less than 20% of the surface area of the original property for it to be considered segregation (otherwise it is considered a division).
Therefore, horizontal division usually applies to buildings that are divided into common elements and private elements; whereas divisions and segregations allow a plot to be split into several independent plots.
An annex of a private element forming part of a horizontal property is an element (usually a storage room or a parking space) that is part of a registered property and which legally can only be sold together with the private element to which it is annexed.
To sell an annex separately from a private element, prior disaffection and separation of that element is necessary, creating a new registered property from the former annex, which would become an independent private element with its own property number and share. On some occasions, an annex can be separated from a private element and on others it cannot, so this is a matter that must be studied on a case-by-case basis.
What is needed to carry out a horizontal division?
If you need a horizontal division deed in Barcelona, you can count on us as, among our specialties, are the Real Estate and Contractual Services. At JLA Notarios we stand out for being professionals who adapt to the needs of our clients and for offering the best assistance with all your questions.
You can make an appointment with us through the different channels, either from our Notary in Barcelona, our email bcn@jlanotarios.com or the contact form on our website.
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