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Property purchase in Poland













Property purchase in Poland

Purchase of a property in Poland requires a due diligence process. It should be carried out preferably by a lawyer (adwokat) not a property agent. Generally Property Agent does not provide appropriate level of safety for they buyer as they are interested in gain and moreover they might not be aware of some important legal issues. Therefore it is generally suggested to commission a due diligence process to a independent lawyer who will be able to exclude all possible dangers before the purchase takes place.


Role of a Notary Public in Poland

Many buyers believe the fact that if the property purchase is carried out by Polish Notary Public it guaranties exclusive safety of the transaction. This belief might be very misleading, particularly with respect of Polish Legal System. Everybody who wants to buy a real estate in Poland should note that a Notary Public does not carry out his own due diligence process and does not verify whether the property is free of any encumbrances. Polish Notary Public is made to base upon the documents and statements of the parties. If the documents or statements are incomplete or false the buyer risks a great problem in the future.


The due diligence process before purchase of a property in Poland

The due diligence process should be carried out by a qualified lawyer (adwokat) as mentioned above. Primarily the property book should be inspected in the Land and Mortgage Registry of Poland in order to identify the property and exclude basic encumbrances. Secondly the Inland Revenue Registry should be carefully reviewed for the sake of excluding state mortgages and other obligations. If the buyer intends to construct something on the property the due diligence process must include a verification of the local spatial development plan.
A proper due diligence process requires verification of many important elements, however they may distinct greatly in respect of different kind of properties.


Purchase of a property in Poland by a foreigner

Purchasing property by foreigners is governed by the provisions of the Act on Purchase of Real Estate by Foreigners. The Act establishes as a general requirement of a permit to buy real estate by a foreigner. This also includes a purchase or taking up of shares in a commercial company which has a registered place of business in Poland.


EU nationals

EU nationals and entrepreneurs are exempted from the obligation of obtaining a permit. However they still must obtain a permit in case of purchase of agricultural and forest land - until 2 May 2016.


Permits

Permits are issued by the Minister of Internal Affairs and Administration.


Prepared by: Michael Dudkowiak (mgr., apl. adw., DipLaw)
Dudkowiak Kopec Business Lawyers - Poland.
A: ul. Nowogrodzka 50/515, 00-695 Warsaw
T: +48 22 300 16 74
F: +48 68 325 37 49
E: michal@dudkowiak.com
I: www.dudkowiak.com




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