Real estate contracts and transaction process

Poland · process safety

The 10 most important legal and procedural checks before a transaction in Poland

The guidelines below describe Polish transaction realities according to the legal status and practice as at the date of publication. They do not replace the analysis of a specific land and mortgage register, contract or individual legal, tax, credit or technical advice.

1. Determine the exact type of right that is the subject of the transaction. Separate ownership of premises, cooperative ownership law, land ownership, perpetual usufruct and share in real estate require different documents and involve different risks. The name "apartment" in the advertisement does not specify its legal form.
2. Read the current land and mortgage register in the official system. Section I describes the property and rights related to its ownership, Section II describes the owner, Section III describes limitations, claims and easements, and Section IV describes the mortgage. Also check the references to unrecognized applications, as the content of the book may change.
3. Verify the identity, representation and marital status of the parties. Check the evidence, powers of attorney, method of representing the company, co-ownership, marital property, inheritance and required consents. A foreign document may require an apostille, legalization or sworn translation.
4. Check the rights of third parties outside the mortgage. Lease, life tenancy, easement, claim under a preliminary contract, enforcement, right of pre-emption or a person using the premises may affect the release and value. Not every important circumstance can be noticed during an inspection.
5. Align the pre-deed document with the actual purpose. The reservation agreement serves to temporarily exclude the premises from the offer, the preliminary agreement commits to the final agreement, and the deed transfers the right. Each document should clearly define the subject matter, price, deadlines, conditions and consequence of failure to perform.
6. Distinguish between a deposit and an advance payment. The deposit has the effects described in the Civil Code, unless the contract provides otherwise; the advance payment is essentially part of the future benefit. The name and clauses must be consistent, especially in the case of credit, legal defects or non-delivery of documents.
7. Write down the conditions precedent and deadlines so that they can be implemented. A credit decision, deletion of a mortgage, division, consent of the authority, inheritance document or right of pre-emption take time. The contract should indicate proof of compliance and the procedure if the deadline is not met.
8. Remember that a notary is impartial. The notary ensures the compliance of the activities with the law and collects certain taxes and fees, but does not replace a personal advisor negotiating in the interest of one party or a full technical and tax examination.
9. Secure payment and deletion of charges in one schedule. Bank accounts, repayment of the seller's loan, promise to cancel the mortgage, notarial deposit or other mechanisms must be described before the deed. Confirm your account details through an independent channel to reduce the risk of fraud.
10. Close entries, issuance and post-deed documentation. Confirm the submission of land and mortgage register applications, payment, report, meters, keys, equipment and notification of the community, cooperative or suppliers. Keep your deed, invoices, energy certificate, bank documents and minutes together.