What is Act 16 and why is it important?

What does Act 16 mean?

Act 16 is a document that certifies that a building is fully completed and can be legally used.

This is the final stage of the construction process and represents a permit for use issued by the competent institutions.

In other words, act 16 means that the building is ready for occupancy and legally put into operation.

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What is the difference between Act 14, Act 15 and Act 16?

Many people get confused, so it's important to clarify:

• Act 14 – the building has reached rough construction; usually within a year, Act 15 is obtained;
• Act 15 – the building is completed and ready for commissioning, which takes about another month/two (unless there are unforeseen circumstances);
• Act 16 – the building has been approved and put into operation;

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Why is Act 16 so important?

Act 16 is a key document because without it:

one cannot legally live in the building
problems with electricity and water may occur (especially in new construction)
some banks refuse mortgage loans
there is a risk that the property will not be recognized as fully completed
a future sale may be difficult or less profitable

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How to check if the building has Act 16?

It can be checked by:

• documents from the investor
• the notary
• inquiry at the municipality
• certificate of commissioning

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What are the risks in the absence of Act 16?

• years of delay
• inability to use normally
• mortgage financing problems
• difficult resale
• additional costs for completion and legalization

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Conclusion

Act 16 is the most important document that proves that the building is fully completed and legally fit for living. When purchasing a new construction, it is always a good idea to check the status of the building to avoid future problems.

Call to Action

If you are considering purchasing a property in a new building and are not sure what the construction stages mean and when it is a good time to make a purchase, contact us and we will help you make a safe choice.