He spent a fortune on renovations. The end of the story surprised the investor

Adapting a basement for residential purposes may turn out to be much more complicated than many investors think. The latest judgment of the Supreme Administrative Court confirms that even expensive reconstruction and actual use of rooms for living do not determine whether they can be recognized as independent residential premises.

Basement as a residential premises. The dispute was ended by the Supreme Administrative Court

The case concerned an investor from Krakow who was rebuilding a pre-war tenement house. Previously, he obtained certificates of independence for premises located on the ground floor and upper floors. He therefore hoped that the same would be true of the space arranged on the ground floor.

However, the administrative authorities refused to issue a certificate of independence of the premises. Their position was subsequently upheld by the local government appeals board, the provincial administrative court and finally the Supreme Administrative Court. It was pointed out that historically there were utility rooms in this part of the building, and the mere arrangement of rooms, kitchen and bathroom there does not change the legal status of this space.

An independent residential premises must meet certain conditions

Pursuant to the Act on the ownership of premises, an independent residential premises may only be a room or a set of rooms separated by permanent walls, intended for permanent stay of people and serving to meet housing needs. Compliance with these requirements is confirmed by the competent authority in the form of a certificate.

The regulations clearly distinguish a basement from an apartment. The basement is treated as a room belonging to the premises, and not as an independent space intended for living.

Floor level is crucial

The technical conditions applicable to buildings also determine whether a room can be considered a residential premises. The regulations require that in rooms intended for permanent stay of people, the floor level should be above or at least at the level of the ground next to the building.

At the same time, the definition of a basement indicates that it is a space in which the floor level is below ground level on at least one side of the building. In practice, this means a conflict with the requirements for living spaces.

Renovation and occupation do not determine the status of the premises

The court noted that a building permit or consent for reconstruction does not guarantee the possibility of separating a residential premises. Its status is not determined by the expenditure incurred, the standard of finishing or the fact that someone actually lives in such a place.

For investors, this means the need for a very thorough analysis before work begins. Otherwise, they may end up with a space that cannot be formally separated and sold as apartments. It remains crucial to meet the requirements arising from the Act on the ownership of premises and technical and construction regulations.