real estate | In Principle

The pandemic has affected the way we shop. More and more frequently, buyers order products (including Christmas gifts) online with delivery to a designated customer service location or a parcel locker, so they don’t have to wait at home in the time slots indicated by the courier. More parcel lockers are appearing in housing estates and on the street. While it is clear that constructing parcel lockers does not require a building permit, are parcel lockers subject to real estate tax?

During the decade after the current Developers Act entered into force in Poland, it was repeatedly argued that its provisions were vague or diverged from the market reality, so that the act did not live up to the hopes placed in it. As a result, in the last few years, work was undertaken to introduce a new law to fill the existing gaps and, above all, provide greater protection for buyers of residential units and single-family houses.

One of the new features of the new Developers Act is comprehensive regulation of the reservation agreement, so far not governed by separate provisions. It is worth thoroughly analysing the shape the drafters decided to give to this type of agreement when introducing it officially into the Polish legal system.

On 1 July 2022, most of the provisions of the new Developers Act will come into force. One of the changes is to make the handover procedure for a residential unit or single-family house more detailed, and to introduce new rights for buyers. The new rules are particularly controversial among developers.

A developer commencing sales of residential units or single-family houses in Poland must prepare a prospectus for the property. The prospectus should include information on other projects planned in the vicinity of the development. In this regard, the current provisions are imprecise and raise concerns. Does the new Developers Act eliminate them?

The new Developers Act substantially modifies the rights and obligations of banks in connection with real estate developments. The new regulations significantly increase the scope of rights and obligations of banks, which will entail a greater expenditure of time and effort on their side. Thus the new rules may increase the cost of banks’ participation in the execution of residential developments.

Analysis of the transitional provisions of the new Developers Act is complicated and unfortunately does not lead to unequivocal conclusions. Indeed, we believe these provisions should be amended immediately to remove doubts, so that developers can prepare for application of the new law and avoid litigation in the future.

A decision on compensation for real property taken by the state may also be issued by the county executive, according to Art. 129(5)(3) of the Real Estate Administration Act of 21 August 1997. When can this provision constitute a basis for determining the compensation due for expropriated property?

The Residential Special Act was supposed to generate huge growth in residential development, mainly by cutting through red tape. Now the hubbub surrounding its introduction seems to have exceeded the real impact of the act. Should it now be plainly admitted that the special act has not lived up to the hope placed in it?

Does State Forests have the right of first refusal on the sale of a residential unit together with a share in a partly forested property? A surprising decision by the Wołomin District Court.

Work is underway on a bill called the Act on Protection of the Rights of Acquirers of Residential Units or Single-Family Houses and the Developers Guarantee Fund (print 985). The bill was approved by the Sejm, the Senate adopted amendments, and the bill will now be reconsidered by the Sejm. Entry into force of the new act will impose additional new duties on developers. The aim is to better protect homebuyers against the loss of funds invested in residential developments, particularly when the developer becomes insolvent before the project is completed. Is the new instrument likely to fulfil its intended function?

The new Act on Settlement of the Price of Housing Units or Buildings in the Price of Property Sold from Communal Property Resources, commonly known as the “Housing for Land Act,” entered into force on 1 April 2021. It is supposed to implement one of the priorities of the National Housing Programme, increasing the number of housing developments. Is this goal likely to be achieved?