Country Buying Guides - Poland

The conveyancing process

• Independent Lawyer
It is essential to use an independent lawyer with a legal knowledge of both the English and Polish legal systems, who are able to translate the documents and explain the terms to your full understanding.

• Due Diligence
It is important to carry out due diligence on the property you are purchasing in order to ensure there are no encumbrances on the property. Your independent lawyer will do this on your behalf.

• Who Can Purchase
A foreign national is permitted to purchase and own real estate in Poland, however must first obtain the permission of the Ministry of Home Affairs of the Republic of Poland in advance of purchasing real estate in that country. A company in Poland that has over 50% foreign ownership must also obtain permission from the Ministry of Home Affairs before that company can purchase real estate in Poland Your independent lawyer can help you with these processes, and this can take up to 6 months.

• Where Can You Purchase
There are some restrictions on foreign nationals as to where they can actually own real estate in Poland. The Polish government restricts the ownership of real estate on the ‘Polish frontier’.

• The Preliminary Contract
Once permission to purchase real estate is obtained from the Ministry, the purchaser of real estate makes an offer to the vendor. This initial contract is then signed and the purchaser is given a specified period of time to obtain financing. Additionally, the vendor is also obliged to make sure that the title to the real estate is clear and capable to being conveyed to the buyer during this time period

• The Deposit
Normally the purchaser is required to place a deposit at the time of signing the initial contract, the deposit is normally between 10-15% of the purchase price.

• Final agreement for sale
The purchase process comes to an end when parties complete the final agreement for sale and transfer the legal title of the real estate. A new title is prepared, placing the real estate in the name of the purchaser. It is when this title is filed with the government that the purchase is truly complete. Your independent lawyer should check each and every contract before anything is signed.

• Inheritance
Most foreign legal systems’ inheritance law is different to our system, hence it is extremely important to use your independent lawyer to help you make a will so that in the unfortunate event of your passing, your wishes and not the word of the law is followed.

• Costs and Fees
Fees that will have to be paid by the purchaser include stamp duty of 2%, court fees of around 1- 1.3%, notary fees normally around 1%. The Land Registration fee is 0.3% - 1.6% of the property price.

In Assocation With The International Property Law Centre LLP