Real estate and construction in Poland

The acquisition of real estate in Poland is primarily regulated by the Civil Code. Depending on the type of real estate, the Act on Real Estate Management or the Act on the Protection of Agricultural and Forestry Land must also be taken into account. However, when determining the purpose of the real estate, it is important to refer to the Act on Planning and Spatial Development.

The development agreement is a contract between the developer and the construction company, which should contain, in particular, precise information about the plot (area, location, etc.), the construction schedule, the price and payment dates, the date of transfer of ownership rights and the rules for cancelling the contract. It is also important to check whether the developer has all the necessary building permits and whether the plot is free of legal encumbrances.

The most common legal problems in the construction industry relate to contract disputes, project delays, breaches of building regulations and construction warranty and guarantee issues. It is important that all contracts are precisely worded and contain all the important elements.

Environmental regulations for the construction industry include requirements for waste management, nature conservation, emissions and the energy efficiency of buildings. Every construction project must take these regulations into account and often requires the corresponding environmental permits.

According to the provisions of the so-called Development Act, a real estate developer who starts selling is obliged to draw up a prospectus for a specific development project. In addition, the real estate developer is obliged to provide purchasers with information about its legal and financial situation and to draw up a timetable for ongoing investments. The real estate developer ensures that the investment is carried out in accordance with the schedule and is obliged to rectify any defects identified during the warranty period

When selling a real estate, it is crucial to carefully check the legal status of the real estate, including the land registers and the documents filed in these registers, which is done as part of the preparation of a due diligence report on the real estate. Before purchasing the real estate, the possibilities of development, the rights of third parties to the real estate (e.g. pre-emption rights) and the environmental conditions must be checked. The contract for the sale of the real estate must be signed in the form of a notarised deed.

The tenancy agreement should contain essential elements such as a precise description of the rented real estate, the amount of rent and the security for its payment, a statement of the duration of the tenancy, damages and liquidated damages, termination conditions and the obligations of the landlord and tenant to maintain the real estate in a reasonable condition.

The most important law regulating the building permit process is the Building Act and the implementing regulations issued on its basis. These documents regulate the construction process from obtaining a building permit through the implementation of the project to the commissioning of the building for use. These regulations also set out the obligations of the investor, the planner and the contractor, as well as the principles of building supervision.

Appropriate permits are often required for the revitalisation and renovation of buildings, especially if the building is listed in the heritage register. The legislation also regulates conservation, the standards for carrying out the work and compliance with local spatial development plans.

Since 1 May 2016, EU citizens have been able to purchase real estate, including agricultural and forestry land, according to the same rules (i.e. with the same restrictions) as Polish citizens. The purchase process includes the usual legal and administrative procedures, such as checking the legal status of the real estate and signing the purchase contract in the form of a notarised deed.