What is the subdivision of a property?

What is Condominium (Floor Unit) Subdivision and What Are Its Benefits?

To establish legal ownership over a specific part of a building—such as an apartment, commercial premises, or garage—it is necessary to initiate the process of condominium subdivision (commonly referred to as “floor unit subdivision” or etažiranje in Croatian law).

Primarily, condominium subdivision is required to resolve ownership rights, as the only valid legal proof of ownership in Croatia is a land registry extract. Apartments, business premises, and similar units cannot be registered in the land registry unless the subdivision process has been carried out. Upon completion of this process, you may also perform other legal transactions, such as obtaining a loan, selling or leasing the unit, or conducting probate proceedings.

When is Subdivision of a House Possible?

Subdivision may also be carried out on family homes that contain two or more residential units, as well as on residential buildings comprising potentially hundreds of apartments.

Furthermore, the process can include any individual usable unit within the building—apartments, commercial premises, garages, parking spaces, balconies, terraces, home gardens, etc.

According to the Ownership and Other Real Rights Act (Official Gazette 81/15), a unit eligible for condominium ownership must constitute an independent functional whole suitable for individual use and management by its owner, such as an apartment or other separate room. It also includes associated land and auxiliary parts of the property.

On Which Properties is Subdivision Not Permitted?

Pursuant to Article 71, Paragraph 5 of the Spatial Planning and Construction Act, hospitality-tourism buildings intended for accommodation and associated commercial, service, recreational, and entertainment uses, located in designated tourist construction zones outside of settlements, cannot be subdivided into condominium units.

Who Carries Out the Subdivision Process and How?

Subdivision is performed by qualified professionals—court-appointed experts or other licensed entities—upon the request of co-owners. They prepare a subdivision plan.

To prepare such a plan, technical documentation of the building is required, showing the dimensions and layout of both individual and common areas. In cases where such documentation does not exist, measurements must be conducted to create the necessary drawings.

Judicial and administrative practice reveals some ambiguity regarding who is authorized to draft subdivision reports for existing buildings—whether architects and engineers, or court experts. However, it is clear that in court proceedings, only certified court experts may do so.

A clear legal regulation defining authorizations, preparation procedures, and approval of subdivision plans would significantly improve legal certainty in property transactions involving divided ownership.

Who Can Request the Establishment of Condominium Ownership?

The following parties may initiate the establishment of condominium ownership:

A co-owner of the property holding an appropriate co-ownership share;

Joint owners collectively holding an adequate co-ownership share;

Multiple co-owners or all co-owners jointly, provided their shares correspond to the required portion;

The landowner or holder of a building right, when dividing the property into condominium units.

Along with a formal request and written consents from all co-owners, it is necessary to determine whether the co-ownership share corresponds appropriately to the total area of the property.

This is determined by a court decision in non-contentious proceedings, unless all co-owners have already contractually defined ownership of specific units and limited their co-ownership rights accordingly.

How Is Subdivision Performed for Newly Constructed Multi-Unit Buildings?

Conducting subdivision for new buildings requires thorough knowledge of the Ownership and Other Real Rights Act.

It is crucial to have project documentation, including detailed floor plans of all individual (private), common, and auxiliary parts of the building—a so-called "Plan of Special Parts" (subdivision or etažni plan). In addition, written consent from all property owners is required.

A common issue arises with buildings constructed before the Ownership Act came into force, where owners of specific units (typically apartments) are recorded only in the Deed of Deposited Contracts.

In such cases, it is necessary to synchronize land registry records with the Deed of Deposited Contracts through a Property Division Agreement or Decision on the Establishment of Condominium Ownership.

Who Makes the Decision on Subdivision?

A formal Decision on Subdivision is required and can be made in one of the following ways:

a) The building manager issues a call for proposals and enters into a contract with a subdivision provider for multiple properties;

b) A majority of the co-owners vote in favor of such a decision.

This process is necessary when transferring ownership from the Deed of Deposited Contracts to the land registry for the entire building and when determining co-ownership shares for all units.

If the transfer concerns only one or several units without adjusting co-ownership shares, the decision is made solely by the requesting co-owners.

It is also important to note that the building representative has the authority to submit requests to public authorities and institutions for necessary documents on behalf of all unit owners.

What Documents Are Required to Prepare a Subdivision Plan?

To begin preparing the subdivision report, the following documents must be collected—with legal support from your attorney:

-Land registry extract with the building recorded;

-Extracts from the Deed of Deposited Contracts for all units;

-Site plan showing the building and associated land used for regular operation;

-List of all unit owners with their personal information.

What is the Surveyor’s Role?

If the building lot is not formally defined, the surveyor must first carry out on-site measurements. In coordination with the building representative, the surveyor proposes a cadastral parcel for the building’s use.

A frequent issue is that buildings are often constructed across multiple cadastral or land registry parcels. Therefore, it is necessary to obtain an Administrative Decision confirming the formation of the building lot. This task usually falls to the building’s representative, not the surveyor.

After that, a Parcel Subdivision Report is prepared.

What is the Role of an Attorney in the Subdivision Process?

The subdivision process is complex and requires a multidisciplinary approach involving architects, surveyors, attorneys, the courts, and court experts.

When purchasing any real estate, it is essential to consult with your legal representative to check for any property-related legal issues.

An attorney will:

-Verify ownership status in the land registry;

-Review construction and usage permits from the seller;

-Assess structural and energy characteristics of the property;

Determine whether a specific part of the building constitutes an independent unit;

Confirm whether subdivision has been carried out and co-ownership shares correctly established.

If subdivision has not yet been performed, the attorney will initiate the process, which can only be completed with the written consent of all co-owners. The attorney will also handle the registration with the land registry, after obtaining a certificate from the competent authority confirming the unit is an independent usable whole.

Can an Attorney Draft a Co-ownership Agreement?

Yes. Once the subdivision report is complete—including technical descriptions, area statements, and diagrams—the attorney may draft a Co-ownership Agreement (Međuvlasnički ugovor). This document typically defines:

-A detailed description of each private unit (with room-by-room measurements and share of the total floor area);

-The owner of each private unit;

-A list of all common parts of the building with their areas and proportional ownership shares;

-Rules on cost-sharing for maintenance of common areas.

The attorney will advise you on your rights and obligations in accordance with the Ownership and Other Real Rights Act.

Whether you are a property owner in Croatia, a foreign national, or an investor, we offer comprehensive legal assistance in the subdivision process—from documentation review and subdivision report preparation to registration in the land registry.

Contact us with confidence if you require legal services related to the subdivision of apartments, business premises, houses, or land—professionally and fully compliant with applicable law.