Poland: PURCHASE OF REAL ESTATE IN PERPETUAL USUFRUCT BY ENTREPRENEURS

The Act of 26 May 2023 amending the Act on Municipal Self-Government, the Act on Social Forms of Housing Development, the Act on Real Estate Management, the Act on Tax on Civil Law Deeds and certain other acts (Journal of Laws 2023, item 1463) [Dz. U. 2023 poz. 1463], which entered into force on 31 August 2023, introduced an episodic regulation whereby perpetual users of certain developed properties can demand the sale of such land for their benefit.

Entrepreneurs, but also individuals (e.g. garage owners), housing associations and residents of housing estates (e.g. car parks, internal roads) have the right to acquire ownership of used land.

THE RIGHT TO REQUEST THE SALE OF THE PROPERTY

For a long time, Polish legislation has included provisions concerning the sale of real estate to its perpetual usufructuary. However, prior to the aforementioned amendment, the possibility of acquisition depended on the will of the owner, who was not obliged to make the sale.

Pursuant to the new provisions of the Real Estate Management Act, a perpetual usufructuary has the right to request the sale of the real estate to which he or she has the right of perpetual usufruct. Such a request can be made for 12 months from the entry into force of the amendment, i.e. until 31 August 2024.

If the usufructuary files a request for buyout of the perpetual usufruct within that period, the consent of the owner - a local government unit or the State Treasury - will not be needed, as a rule.

Such demand shall not be granted:
1) if the property was let for perpetual usufruct after 31 December 1997;
2) if the perpetual usufructuary has not fulfilled the obligation specified in the agreement (or decision) to let the land for perpetual usufruct;
3) in relation to land located on the territory of sea ports and harbours;
4) if the land is used for running a family allotment garden;
5) in respect of undeveloped land property.

Our real estate department will be happy to answer your questions on this topic. Please feel free to contact us.

 

Autor: Agnieszka Łuszpak-Zając
Autor: Marta Łąk-Bednarczyk