Sylwia Moreu-Żak | In Principle

The primary stated purposes of the Agricultural System Act of 11 April 2003 are to strengthen family farms in Poland, ensure the country’s food security, and promote sustainable agriculture with an emphasis on environmental protection. Therefore, the act imposes severe sanctions for violation of its provisions: nullity of the transaction or forced buyout of the agricultural property.

Before any transfer of shares in companies, it is essential to analyse the transaction in the context of the restrictions on share trading under the Agricultural System Act. If any of the subsidiaries holds an agricultural property (of at least five hectares), it may be necessary to notify the National Support Centre for Agriculture. Failure to notify the transaction will invalidate the transaction.

The procedure for obtaining approval for acquisition of agricultural property is highly formalised. Not every entity is eligible to acquire agricultural property. For example, this cannot be done by a commercial company interested in starting agricultural activity. Additionally, strict requirements have been enacted governing the price at which the vendor can offer agricultural property for sale.

As of 1 January 2026, every new multifamily development will have to allow for operation of an emergency shelter. Civil defence authorities will also have to designate which existing or planned structures can serve as shelters, hiding places, and sites of emergency refuge.

The recent overhaul of the Planning and Spatial Development Act tidied up and streamlined the planning procedure. In addition to revolutionary changes, such as replacement of the zoning study with the master plan and commune development strategy, as well as introduction of integrated development plans as a special type of local zoning plan prepared at the initiative of private investors, a nationwide urban planning register was introduced, and the catalogue of tools for public participation in land use and development issues was expanded.

The July 2023 amendment to Poland’s Spatial Planning and Development Act introduced a special form of local zoning plan—the integrated development plan. It grants communes and investors more freedom to locate development projects, regardless of the findings of the existing local zoning plan. Ultimately, integrated development plans will replace the resolutions on siting of housing developments issued under the housing special act (such resolutions can be issued until the end of 2025). But an integrated development plan can be enacted for any type of project, not just residential projects.

Pursuant to the 7 July 2023 amendment to the Spatial Planning and Development Act, the zoning study will be superseded by a master plan and commune development strategy. The provision imposing an obligation on communes to adopt a development strategy enters into force on 1 January 2026. Introduction of master plans is intended to vest more power in local governments in Poland in establishing policies for land use and development.

The choice of a fee model is a key element of any contract for construction works. In market practice, several mechanisms are in place for determining the payment method, each of which has its advantages and disadvantages. The chosen fee model should correspond to the specifics and scope of work and take into account the interests of both parties to the contract.

More and more residential tenants recognise the advantages of institutional leasing over renting from private individuals, due to the security and stability of the lease relationship, the attractive standard of the units offered, and the package of property management services. The question is what type of agreement to conclude in such a lease relationship.

In 2022, the Polish parliament introduced a number of significant changes to the Construction Law. The most important of these are related to further digitalisation of administrative processes in construction. The amendment introduced the ability to maintain a daily construction log and site book in electronic form, as well as an electronic central register of licensed builders. The administrative procedures have also been simplified for construction of single-family houses with an area of up to 70 m2, and new obligations for the energy performance of buildings have been implemented.

As of 29 June 2022, the rights and obligations under three types of decisions issued under the Public Roads Act can be transferred to another entity. These are decisions permitting the location or reconstruction of an exit from a public road; placement of devices and advertising in a right of way; or occupation of a right of way for purposes not related to construction, reconstruction, repair, maintenance or protection of roads.

Joint and several liability of the investor and the contractor for the remuneration of subcontractors – this subject is discussed by Sylwia Moreu-Żak, attorney-at-law, counsel at Wardyński & Partners in the latest episode of News from Poland.