Change of Use of a Residential Unit and Non-Residential Premises (Re-Approval)

What a Change of Use Permit Is and When It Is Necessary

A change of use permit, often referred to as "rekolaudace" under Czech legislation, applies to a much wider range of situations than many people realize. The most common cases involve converting apartments into offices or shops, merging multiple apartments into a single unit or dividing them, changing the purpose of a business establishment, and also making changes to its operational technology. An example would be a situation where you have warehouses in a non-residential space and want to start a manufacturing operation instead, which has different safety and environmental requirements.

Even such a change requires a new permit. The Prague-based legal team at ARROWS law firm deals with this issue daily and routinely handles it in practice – from simple apartment conversions to complex reconstructions of old industrial sites and conversions of entire residential buildings.

It is important to understand that the new Building Act, which becomes fully effective on 1 July 2024, has introduced fundamental changes to the permitting process and digitalization through the Builder's Portal. This means that even if you have managed a similar process on your own in the past, the administrative procedure is now different.

When a Change of Use Permit Is Required and When You Cannot Do Without It

A change of use is required if you want to use a property for a purpose other than that specified in the occupancy permit or building permit. This also applies in cases where the change appears to be merely formal.

We distinguish between two basic situations:

• Change of use involving structural modifications: If the change requires interventions in the building's structure (demolishing partitions, creating new entrances), you apply for a project permit, which also includes the change of use.

• Change of use without structural modifications: If only the purpose is changing (e.g., from a textile shop to an office) without the need for structural work, you submit a separate application for a change in the use of the building.

Examples of Situations Where a Change of Use Permit Is Definitely Required

If you want to convert an apartment in the city center into an office, a doctor's office, or a commercial space, a change of use is necessary. The Building Authority will require verification that the new purpose does not endanger the safety of other residents in the building (fire safety) and that hygiene standards are met. You will also need a permit if you own a family house and want to turn the garage into a shop, or if you are converting an old warehouse into apartments.

Situations Where You Can Do Without a Change of Use Permit

A change in the use of a building is not necessary only if the new method of use does not differ from the original one in terms of its demands on public interests and is in accordance with the occupancy permit. For example, changing from one administrative activity to another in premises approved for office use generally does not require a change of use permit.

Many entrepreneurs mistakenly believe that if they use a space without an official change of use and no one notices, nothing will happen. However, the Building Authority can discover illegal use during an inspection or based on a report. A problem will also arise when selling the property or financing it with a mortgage, as banks require the actual state to be consistent with the legal state.

Special Rules for Different Types of Buildings

The change of use for different types of buildings is governed by slightly different rules and the jurisdiction of authorities. For ordinary buildings (family houses, apartments), the municipal building authority decides, while for reserved constructions, the Transport and Energy Building Authority (DESÚ) has jurisdiction.

Step by Step: The Change of Use Procedure

The process of changing a property's use has its rules under the Building Act and its implementing decrees. If you want to avoid delays, we recommend entrusting the process to experts.

Preparation of Materials and Document Collection

Before contacting the Building Authority, prepare your documents. You will need the occupancy permit or building permit that defines the current use. If this documentation is missing, you must have an as-built documentation (a "pasport stavby") drawn up, which the Building Authority will verify. Also, prepare basic information about the property and ideally photographic documentation of its current state.

Preparation of Documentation for the Change of Use Application

If the change of use requires structural modifications, you will need project documentation prepared by an authorized person. The documentation must compare the current and new state according to the relevant decree.

Even if the change does not require structural modifications, it is necessary to attach documentation to the application showing the change of use and data on compliance with public interest requirements.

The cost of preparing this documentation ranges from thousands to tens of thousands of crowns, depending on the scope. The legal team at ARROWS law firm collaborates with vetted designers and can recommend suitable experts for you.

Obtaining Binding Opinions from Relevant Authorities

A key step is to obtain binding opinions from the relevant authorities. Despite efforts to integrate agendas, it is often necessary to secure separate opinions from:

• The Fire Rescue Service (HZS) – assesses fire safety (escape routes, fire extinguishers).

• The Regional Public Health Authority (KHS) – assesses noise, ventilation, and lighting.

• The Spatial Planning Authority – provides a binding opinion on compliance with the spatial plan.

Preparation and Submission of the Application

The application for a permit for a change in the use of a building is submitted on a prescribed form. The most effective way is to submit it through the Builder's Portal, which will guide you through the form, but it can also be submitted in paper form.

The application includes:

• Identification details of the building and the applicant.

• A description of the current and new method of use.

• The justification and scope of the change.

Application attachments:

• Documentation (as-built documentation or project plans).

• Binding opinions from relevant authorities.

• Consent of the building owner (if the applicant is not the owner).

• Opinion of the owners of the technical infrastructure (if the demands on the networks are changing).

Communication with the Building Authority and the Procedure

The Building Authority will assess the application. The deadline for issuing a decision is 30 days from the start of the proceedings, or up to 60 days in more complex cases.

If the application is incomplete, the authority will ask you to supplement it and will suspend the proceedings. If the change necessitates an assessment of its impact on the surroundings, the authority may order an oral hearing. The lawyers at ARROWS will fully represent you in the proceedings, so you do not have to deal with the authorities in person.

What Happens When the Building Authority Identifies Problems

The Building Authority examines compliance with the spatial plan and general construction requirements. If you want to operate a noisy production facility in a residential zone, the authority will reject the application for being in conflict with the spatial plan. If the project does not meet fire safety standards, you will be asked to revise it. These problems can be prevented through thorough preparation and consultation on the project before submitting the application.

Special Situation: Change of Use of an Apartment in a Co-owned Building (Unit Owners' Association - SVJ)

If you own an apartment in a building with defined units (managed by a Unit Owners' Association - SVJ), the situation is more complex. According to the Civil Code, it is necessary to distinguish whether the change affects the common parts of the building or changes the share in the common parts.

If you are changing the use of an apartment to an office and are not interfering with the load-bearing structures or the appearance of the building, the Building Act requires proof of title to the property with the application. However, within an SVJ, it may be necessary to change the owner's declaration if the character of the unit as defined in the declaration is changing.

We recommend discussing the plan at an SVJ assembly and obtaining consent. The lawyers at ARROWS will help you interpret your SVJ's statutes and prepare the necessary documents for the vote.

Costs: What to Expect Financially

• Administrative fees to the Building Authority

Fees are governed by the Act on Administrative Fees. A change in the use of a building without structural modifications costs CZK 1,000. A project permit with structural modifications depends on the type of building, for example, CZK 5,000 for a residential building or CZK 10,000 for other buildings requiring a permit.

• Preparation of documentation and expert opinions

Project documentation or an as-built documentation will cost between CZK 5,000 and CZK 50,000, depending on the complexity. A fire safety solution (PBŘ) typically costs between CZK 3,000 and CZK 10,000. If a noise study or measurement is required, be prepared to spend CZK 5,000 to CZK 15,000.

• Construction work and other costs

The costs of the modifications themselves are individual. Don't forget legal representation, which will save you time and eliminate the risk of rejection. In summary, for a simple administrative change, expect costs ranging from CZK 5,000 to CZK 15,000. For complex changes, the amounts can run into tens or even hundreds of thousands.

Timeframes: How Long Is the Wait

• Theoretical and Statutory Deadlines

Issuing a binding opinion (HZS, KHS) takes 30 days, but this deadline can be extended. The Building Authority's decision takes 30 days from the start of the proceedings for simple matters; for more complex cases, the deadline is 60 days.

• Practical Deadlines

In reality, expect a total time of 2 to 4 months. Delays are caused by waiting for opinions from relevant authorities, the need to supplement the application at the authority's request, or potential objections from parties to the proceedings.

Special Situation: Change of Use Without Structural Modifications

If you have a space that already meets the technical requirements for the new purpose, the procedure is simpler. The Building Authority will only assess compliance with public interests. Sometimes, it may only involve notifying the authority of the change in use if the authority evaluates it as such within its competence, but a decision to permit the change is the standard.

Accelerated Procedure

The new Building Act introduced the institute of an accelerated procedure. If the applicant provides the consent of all parties to the proceedings (neighbours, municipality) and the binding opinions, the Building Authority can issue the permit as the first act in the proceedings. This significantly shortens the process, making it an ideal path for non-controversial changes.

How to Avoid Problems: Practical Advice

• Verify compliance with the spatial plan with the municipality or online before you start planning.

• Communicate with your neighbours and inform them of your plans to prevent appeals.

• Do not underestimate fire safety and consult your project with a fire safety specialist early on.

• Do not start without a permit; retroactive legalization is always more complicated and expensive.

• Use experts from the beginning; legal and technical assistance will save costs in the end.

Conclusion

Changing a building's use is a process that requires diligence. The new Building Act has brought digitalization and some simplification, but the requirements for safety and the protection of public interests remain strict. The Prague-based legal team at ARROWS law firm will help you navigate the entire process smoothly, handle communication with authorities, and protect you from penalties.

If you are considering a change of use, do not hesitate to contact us at consultation@arws.cz. An initial consultation can save you a lot of trouble.