turczanieruchomosci.pl: Amendment of transformation of perpetual usufruct right into ownership right

We are pleased to announce that on our website turczanieruchomosci.pl appeared a new article written by a member of our Team, legal trainee Jakub Matysiak, who specializes in civil law and administrative law in particular agricultural law and agricultural real estate – „Amendment of the transformation of the right of perpetual usufruct into ownership”.

Implemented as of August 31, 2023, the amendment to the Real Estate Management Act is an important stage in the elimination of the institution of perpetual usufruct from the Polish legal system. The new regulations provide for changes in the system of payment for perpetual usufruct property, affecting businesses, cooperatives and housing communities, as well as individuals. It is also important to note that the public administration will not be able to refuse to sell real estate to a perpetual usufructuary if the latter submits an application within 12 months of the entry into force of the new regulations, and this deadline is August 31, 2024.

The above-mentioned amendment also introduces new rules for payment for land acquisition, taking into account different pricing options and the possibility of spreading the payment over a maximum of 10 years. Local government units may also set their own rules for payment.

The new regulations change the way in which the price of land property is determined, which can result in relatively high fees for land acquisition by the perpetual usufructuary.

While the introduction of these regulations is intended to eliminate perpetual usufruct from the Polish legal system, there are some concerns about the short application deadline and the amount of fees, which may make the process of buying back land uneconomical for many entities.

We encourage you to read the full publication on turczanieruchomosci.pl for detailed information on this topic: https://turczanieruchomosci.pl/2023/09/08/nowelizacja-przeksztalcenia-prawa-uzytkowania-wieczystego-w-prawo-wlasnosci/.