Real estate crowdfunding
What is commerciality?
June 21, 2022
Marketability is the definitive transformation of the destination of a property. Find out more about how it works.
The destination of a property is the reason for which it was built. The destination is defined by the Code de l'Urbanisme and must be indicated in the application for administrative authorization for the property (building permit, prior declaration...). There are 5 possible destinations:
Theuse of a property corresponds to its actual use. The use is covered by the Code of Construction and Housing. There are only two categories of use: housing and other premises.
When a property changes its destination, a request must be made to the town planning department. Depending on the work planned, a building permit or a prior declaration may be required.
When changing the use of a property, only the change of use of residential premises is subject to an authorization to be granted by the City Council, the objective being to ensure the protection of the housing stock in tense urban areas. Thus, no authorization is required to transform offices into housing.
There are three types of change of use:
It is only in the latter case that we speak of commerciality and of a compensation transaction.
It should be noted that in co-ownership, the by-laws detail the destination of the building and may prohibit certain activities. If the planned use of the lot is authorized, the approval of the co-ownership will not be necessary. Otherwise, it will be necessary to obtain the authorization of the co-owners at a general meeting.
In certain zones, municipalities with more than 200,000 inhabitants, the authorization of change of use is conditioned to the implementation of a compensation surface. That is to say that in case of transformation of a dwelling into offices, the same surface will have to be transformed into housing.
Offsetting maintains an adequate level of housing by compensating for the loss of one unit with another. This compensation can be done:
When compensating, the two surfaces must be of equivalent nature: quality, size, environment, etc...
The commerciality has a market value and allows the owner wishing to transform offices into housing to receive an indemnity that can be interesting depending on the city or district concerned.
In Paris, there are three compensation sectors:
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