There are two types of ownership when it comes to multiple-unit buildings:

  • Condominium (sectional title, etažna lastnina);
  • Ideal share (idealni delež).

Condominium implies ownership of an individual part of the building and co-ownership of common areas where:

  • An individual part of the building must be an individual functional unit fit for standalone use, e.g. an apartment or office (other, separate facilities can belong to such an individual part, e.g. a shed or a garage); and
  • Common areas are other parts of the building intended for joint use by the sectional title holders and the land on which the building stands, or even other real estate.

Ideal share: If condominium/sectional title is not established, the owners of the various parts of the multiple-unit building are entered in the land register as owners of a(n ideal) share of the entire property.

As long as the ideal share refers to (and is defined as such in the sales contract) a physically separate area (e.g. an apartment, ground floor of a house, etc.), it is a title equal to condominium. You can, for example, mortgage the property, although banks much prefer condominium.

One of the differences is in that in case of ideal-share property, the owners of other ideal shares (co-owners of sorts) have the right of pre-emption. Example: If you own an apartment that is not entered in the land register as condominium and would like to sell it, you have to first offer it for sale to all other owners in the building and cannot sell it to a third party under more favourable conditions than waived by the other (co)owners.