real estate | In Principle

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?

On 20 April 2021, the President of Poland signed into law an act amending a number of laws on public participation in proceedings concerning projects likely to have a significant impact on the environment.

The amendment to the act on environmental impact assessments signed into law by the President of Poland increases the powers of environmental organisations and makes obtaining permits for development projects more time-consuming. It will be possible to stay the execution of a decision on environmental conditions, suspending proceedings on project permits. But the law also provides for certain measures that may limit the negative impact of such rulings on investors.

On 19 September 2020, an amendment to the Construction Law came into force, making it harder to attack building permits and occupancy permits. Among other things, the parliament decided that a five-year limit should be introduced for declaring a building permit invalid, from the date the decision entered into legal circulation, thus limiting the discretion of the public administration in assessing the validity of the permit. However, Art. 37b of the Construction Law, introducing this limit, has begun to raise doubts among some commentators, which may lead to the perpetuation of what we believe to be an erroneous interpretation of the new provisions and undermine their intended purpose. Therefore, it is necessary to oppose the view that this provision does not apply to decisions issued before the amendment

The transition period during which UK citizens and undertakings were generally treated under EU law like citizens and undertakings from EU member states came to an end on 31 December 2020. This raises the question under what conditions British citizens and undertakings may acquire real estate in Poland or shares in companies holding real estate in Poland.

All buildings designed and executed in Poland on or after 31 December 2020 will have to meet stricter standards for consumption of non-renewable primary energy and the U-factor for heat flow. This change implements into the Polish legal system EU regulations adopted in 2010. It might seem investors have had a long time to prepare for the new energy-efficiency standards. But many of them are still waiting for consideration of applications filed under the existing standards, and their applications may not be decided before the more stringent standards enter into force. This raises the question of how those pending applications will be decided.

First a warning, then possibly repeated fines on investors and owners for illegal use of structures: this is one of the effects of recent changes in the Construction Law.

The Act on Acquisition of Real Estate by Foreigners of 24 March 1920, which has been in force in Poland continuously for over 100 years, greatly limits the acquisition of real estate in Poland by foreigners, by requiring them to obtain prior consent from the Minister of Interior and Administration. Conclusion of a real estate acquisition agreement without a required permit is subject to the most severe sanction, resulting in invalidity of the transaction. However, the act permits certain departures from the strict requirement of ministerial consent.

The recent amendment to the Construction Law introduces a new element of the construction design: the technical design, which will not be enclosed with the application for a building permit. This will speed up the initial stage of the project.