REAL ESTATE review INSIDE VIEW
AMENDMENT OF RULES ON COMMERCIAL PREMISES As of March 2, 2019, shop owners have faced new rules regarding work to be carried out within their commercial premises. These ae the result of several amendments to the government decree introducing the so called “function conversion permit” in 2018. Our earlier article in the Budapest Business Journal (October 26, 2018) examined the provisions of the government decree itself, requiring a special permit for function conversion and alteration works in commercial buildings. In this present article, we summarize the new applicable provisions.
Dr. Szilvia Andriska Attorney (H) Noerr and Partners Law Firm The decree originally defined in which cases it was necessary to conclude the function conversion proceeding. The amendment redefined these cases. As a result of the changes, such proceedings are necessary not only for the conversion of a building with a gross area of at least 400 sqm into commercial function, but also for the conversion of a separate unit with such gross area, located within a building. The procedure should also be applied if the owner or the lessee plans to carry out works within a commercial building, or within a separate commercial unit, with the purpose of increasing the area of such a building or unit to or above 400 sqm and the works are not subject to a building permit. Finally, the procedure also has to be followed regarding alteration works where no building permit is
necessary and which are related to the sales area of a commercial building, provided that the size of the sales area is 400 sqm or greater. Pursuant to the government decree amendment, in the above cases the owner or lessee of the given premises must obtain the assessment of the head of the Government Office of Hajdú-Bihar County. That authority will assess the expected advantages from the remodeling and the possible damages that such works may cause. The assessment will also cover the foreseeable impacts of the building in question on the surrounding area, with special regard to environmental, infrastructural and urban planning aspects. Further, the applicant of such proceedings must be able to outline the measures planned with the purpose of minimizing the related adverse effects and the feasibility thereof. As part of the application, promoting the usage of alternative energy, and supporting sustainable transport solutions might be evaluated positively. The amendment now also provides for the specification documentation to be submitted together with the application for the permit. Amongst others, precise technical documentation and present and future floor plans of the commercial edifices will have to be added to the documents, based on which the Government Office will assess the application for permit. The current
amendments also apply to permit applications already in progress. It should be remembered that the above cases concern basically those matters when the construction works themselves do not require a building permit. However, this does not mean that no special assessment is necessary from the authority when the works are subject to a building permit. If the construction requires a building permit, the above detailed aspects are indeed duly taken into account during similar proceedings by the competent authorities. What is also important to note is that if anyone plans to open a store selling fast moving consumer goods, the parking spaces prescribed by law together with electric chargers have to be made available in order to obtain the operational permit. According to the above, special attention has to be paid while opening or carrying out alteration works in commercial premises. If the rules are not followed, the authorities have the possibility to impose a fine. The information contained in the article is for informational purposes only and should not be considered legal advice, legal statement or interpretation.
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