2023-10-15

Amendment of the Real Estate Management Act

On 31 August 2023, the Act of 26 May 2023 entered into force. on Amendments to the Act on Municipal Self-Government, the Act on Social Forms of Housing Development, the Act on Real Estate Management, the Act on Tax on Civil Law Activities and Certain Other Acts (Journal of Laws 2023, item 1463) (hereinafter: the ‘Act’). The Act introduced further changes aimed at transforming the specific structure of the right of perpetual usufruct into ownership and is dedicated primarily to land for non-residential purposes.

Pursuant to the amendment, perpetual usufructuaries of real property developed for commercial purposes (in particular warehousing, industrial or service purposes) are entitled to submit an application within 12 months of the effective date of the Act for the sale of the property to them. The structure applied is different from that of the conversion of residential real estate, which took place by operation of law.

The price of the real estate and the factors defining it are specified in detail in the Act, with a distinction being made between State Treasury land and local government units.

The aforementioned power of conversion was excluded, among others, in the following cases:
(i) real estate that was granted in perpetual usufruct after 31 December 1997,
(ii) undeveloped real estate,
(iii) real estate constituting allotment gardens.

*The amendment corresponds to the transformation of real estate developed into residential property into ownership by virtue of law on 1 January 2019.

15 October 2023

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CONTACT
WARSAW / GDYNIA
[!] ATTENTION: Meeting by appointment only
WARSAW
PLAC ZBAWICIELA 2/23
GDYNIA
AL. MARSZ. PIŁSUDSKIEGO 18/4