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Condominium conversion and allocation count as apartment sale

ATA/397/1998Court of Justice / Administrative ChamberJun 30, 1998Confirmed

Open source

Extracted by Omnilex

Omnilex summary

The decision holds that a transfer of a co-ownership share in an immovable property, followed shortly thereafter by the creation of condominium ownership and the allocation of the shares, is legally equivalent to the direct transfer of condominium units. As a result, the transaction falls within the authorization regime for the sale of apartments under the LDTR.

Omnilex headnote

LDTR art. 39 para. 1; transformation of co-ownership into condominium ownership followed by a share allocation: qualification as apartment alienation subject to authorization. Transactions must be assessed according to their economic and legal effect; where a share transfer is immediately followed by the creation of condominium ownership and allocation of the units, the operation is equivalent to a direct sale of condominium apartments and cannot evade the authorization requirement.

Full text

Descripteurs

DROIT PUBLIC DES CONSTRUCTIONS; CONSTRUCTION ET INSTALLATION; AUTORISATION DE VENDRE; VENTE; LOGEMENT; TPE

Normes

LDTR.39 al.1

Résumé

La transformation d'une copropriété en propriété par étage suivie d'un partage-attribution équivaut à une aliénation d'appartement soumise à autorisation selon la LDTR. La cession d'une part de copropriété d'un immeuble, suivie peu après de la mise en propriété par étages de ce dernier et d'un partage-attribution des parts de copropriété, équivaut à céder directement des parts de propriété par étages, opération qui tombe sous le coût du régime d'autorisation de vente d'appartements prévu par la LDTR.

Keywords

construction lawcondominium ownershipapartment saleauthorizationco-ownershiphousingalienation

Extracted by Omnilex

Key legal questions extracted by Omnilex

Key legal question

Whether converting co-ownership into condominium ownership followed by an allocation constitutes an apartment alienation requiring authorization under the LDTR.

Extracted holding

Yes. The sequence is treated as a direct transfer of condominium units and therefore falls under the authorization regime for apartment sales.

Extracted reasoning

The court equated the practical effect of the transactions with the alienation of an apartment. A share transfer followed shortly by conversion into condominium ownership and allocation cannot escape the LDTR authorization requirement.

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