Obtain a certificate of the property allocation in the local Spatial Development Plan
Agency: Warsaw City Hall – Office of Architecture and Spatial Planning
Parties obtain a certificate from the local Spatial Development Plan entry in order to verify that the property is not classified as agricultural property. If it were agricultural, certain limitations on the transfer would apply. Due to changes in national legislation, many local Spatial Development Plans have expired and new plans have not been adopted yet. Therefore, in many cases the notary must be presented with a certificate of property allocation in the Spatial Development Plan that also certifies, if applicable, that there is no Plan for the relevant property. The cost of the certificate is PLN 17. Some information concerning the Spatial Development Plan (e.g. information about the coverage by the plan) is also available online. If the information online is sufficient and detailed, the notary may not need to request an additional document.
Time and cost: 14 days, PLN 17 (Charges: PLN 17; (PLN 5 for the application and PLN 12 for the certification – commonly obtained in our case scenario). For full extract: from up to 5 pages – PLN 30.00. Copy of more than 5 pages – PLN 50.00 (not commonly obtained in our case scenario))
Obtain an extract of the Cadastre entry
Agency: Warsaw City Hall – Office of Geodesy and Cadastre
Parties obtain an extract of the Cadastre entry held by respective geodesic authorities, stating the evidentiary number and the boundaries of the real estate on the official map, as well as information regarding the character of the plots comprising the real estate (e.g. agricultural, housing, urban). If no local Spatial Development Plan is adopted for the area this information will constitute the basis to determine the plot type.
Time and cost: 7 days, PLN 50
- PLN 40 (electronic extract)
- PLN 50 (printed extract)
- PLN 140 (extract along with the Cadastre map – in electronic form)
- PLN 150 (printed extract along with the Cadaster map)
Obtain an extract of the Land and Mortgage Registry entry
Agency: Land and Mortgage Registry
The seller must obtain an extract of the Land and Mortgage Registry entry, which will need to be presented to the notary. This document discloses the owner or perpetual usufructuary of the property. It also discloses whether there are any mortgages or other encumbrances over the property. The extract of the entry from the Land and Mortgage Register can be issued either by the relevant court, or directly through the online platform. The cost of the full extract is of PLN 60 if obtained through the court, and PLN 50 if requested online. The price of the abbreviated extract is of PLN 20 if requested online. According to the legislation, the Land and Mortgage Registry is maintained in electronic form and available on www.ekw.ms.gov.pl
Time and cost: Less than 1 day (online), PLN 50 (PLN 20 (abbreviated extract); PLN 50 (full extract))
Obtain company record from the National Court Register
Agency: National Court Register
Since the purchaser and the seller are companies, a record from the register of entrepreneurs of the National Court Register is required, in order to establish who is authorized to transfer the property (e.g. who is an authorized director in the case of a limited liability or a joint stock company).
Time and cost: Less than 1 day (online)
- No cost (extract obtained online)
- PLN 30 (abbreviated extract)
- PLN 60 (full extract)
A notary executes the sale or transfer agreement
The agreement on the transfer of ownership or perpetual ‘usufruct’ of the property must be executed in the form of a notarial deed. The notarial deed includes information obtained from the Land and Mortgage Registry, from the Cadastre, from the Spatial Development Plan and from the National Court Register. Necessary documents are either brought by the parties or obtained by the notary through online platforms. Based on this information, the notary will also establish whether the persons who sign the agreement are authorized to represent the company. The corporate consent of the shareholders’ meeting for the transfer of the property is required by the Companies Code unless the Articles of Association excludes such necessity. The relevant corporate consent must be presented to the notary public, in order to establish the validity of the transfer of the property.
For all properties that exceed EUR 15,000 the notary must inform the General Inspector for Financial Information (GIIF). He sends this information to the GIIF through a dedicated webpage: https://www.giif.mofnet.gov.pl
Additionally the notary sends:
- A letter to the Tax Office (to inform about the transaction);
- A letter to the Cadastre (to inform about the changes);
- A letter to the City Hall (to inform of the change of the owner);
- Statement providing the actual beneficiary of the transaction, stating whether actual beneficiary is person in prominent political position, relative to such person or family member of such person.
Time and cost: 1 day, PLN 7,617.5
Notary’s fees are based on the following fee schedule, that sets the maximum chargeable fees:
- Up to 3,000 PLN – 100 PLN;
- From 3,000 PLN to 10,000 PLN – 100 PLN + 3 % of excess over 3,000 PLN; 3) from 10,000 PLN to 30,000 PLN – 310 PLN + 2 % of excess over 10,000 PLN;
- From 30,000 PLN to 60,000 PLN – 710 PLN + 1 % of excess over 30,000 PLN;
- From 60,000 PLN to 1.000.000 PLN – 1,010 PLN + 0,4 % of excess over 60,000 PLN;
- From 1,000,000 PLN to 2,000,000 PLN – 4,770 PLN + 0,2 % of excess over 1,000,000 PLN;
- From 2,000,000 PLN – 6,770 PLN + 0,25 % of excess over 2,000,000 PLN, but no more than 10,000 PLN, and if the transaction is between close relatives 7,500 PLN.
The fee cannot exceed 10,000 PLN or 7,500 PLN (for the person from the first group of taxpayer). Legal basis: Regulation of the Ministry of Justice dated 28 of June 2004.
Apply for registration at the Land and Mortgage Registry of the relevant court
Agency: Land and Mortgage Registry
Ownership of the property is legally transferred from the moment of the signature of the sale agreement in the presence of the notary. However, updating the Land and Mortgage Registry is a necessary step to finalize the property transfer, and allow the new owner to fully benefit from the property (for example by using the property as a collateral for a loan). Starting July 1, 2016 the notary sends the notarial deed with the application for entry into the Land and Mortgage Register electronically via the ICT system. The notary is obliged, no later than the day of conclusion (the signing) of the agreement, to apply for entry in this register via the ICT systems. Next steps in the registration proceedings are not yet carried out via the ICT system. The procedure is complete when the owner receives an official notification from the court that the transfer is registered. If the parties believe a mistake was made in the registration, they can file a complaint to contest the decision. The registration becomes legally binding after 7 days (if a Referendarz registered the property) and 14 days (if it was a judge).
Time and cost: 120 days, PLN 200 (The registration fee amounts up to PLN 200 to PLN 150 depending on circumstances (transfer of ownership for whole real estate) or the equivalent part (transfer of partial ownership) but no less than PLN 100.)