Homepage Real property Purchase of real property Procedure of real property purchase

Procedure of real property purchasePrint

Before purchasing the chosen real property it is recommended to check its legal status and potential encumberances. In order to do so, one should obtain the number of the land and mortgage register -> and check the entries.

It is also worth consulting the building management to check whether the real property is not indebted (whether the present owner paid the rent and other fees on time). You should also request a certificate confirming the absence of arrears in the property tax -> from the local commune competent for the real property. It is also recommended to find out the state of repair and usage by talking to the seller and building management about renovation policy.

Before signing the final sales agreement, it is worth asking the seller to present a statement of the municipal or communal office confirming that there are no registered residents (what is registered residence ->?) in the real property.

After the real property has been selected, a preliminary agreement is concluded with the selling party. It is not required by law to prepare and sign such agreement at a notary public in the form of a so-called notarial deed, but this is the safest solution. However, it requires the payment of the notarial fee (charge)->. A list of notaries public associated in the Notarial Chamber in Warsaw is available here -> 

The preliminary agreement should specify:

  • the price of the flat,
  • the date of leaving the flat by its current owner,
  • the date of payment.

A description of the current state of repair of the flat may be included in the remarks. It should also list the facilities in the flat (usually kitchen and bathroom equipment) and a list of potential repair works to which the present owner is obliged before handing the flat over to the buyer.

Signing a preliminary agreement is often connected with making an advance payment (what is an advance payment? ->) or caution money (what is caution money? ->) to the selling party (e.g. in the amount of 10% of the total price of the purchased real property).

The sales agreement is concluded at a notary public (in the form of a notarial deed under pain of nullity). A list of notaries public associated in the Notarial Chamber in Warsaw is available here -> notarial fee (charge) -> is charged for notarial services, in an amount depending on the value of the transaction.

After signing the sales agreement a tax on civil law transactions -> has to be paid in the amount of 2% of the value of the purchased real property and an entry has to be made in the land and mortgage register -> maintained for the real property. The cost of entry in the land and mortgage register is PLN 200 and, in return for a fee, this can be entrusted to the notary public. An application for changing the entries in the land and mortgage register is available here -> The change of owner should also be reported at the local municipal or communal office competent for the location of the real property. Such entry also constitutes information about the new payer of property tax ->. Then, residence can be registered ->

Note: Residence registration obligation -> for Polish citizens will be revoked on the 1st of January 2016.

The buyer should also contact the power or gas distribution company and the telecommunications service provider in order to notify them about the change of owner. It is also recommended to notify the employer, banks and other institutions about the change of registered residence address and postal address.

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