|
Since Poland joined the European Union back in 2004 the rules relating to the foreign freehold ownership of property in Poland have been eased and the entire property buying process is now far more transparent and simple to navigate.
When it comes to an examination of how to buy investment property in Poland a little will still depend upon the nationality of the buyer - but with the assistance of a local estate agent and English speaking lawyer the whole process should proceed seamlessly.
Those who herald from another EU member state are free to purchase property in Poland; those from other countries such as the US for example, require the permission of the Polish Ministry of Interior and Administration.
Because property negotiation is done so openly in Poland with face to face discussions to find compromises, middle ground and acceptable terms between the property investor and the vendor par for the course, this makes the property buying process quite refreshing for international real estate investors used to having to negotiate all terms via banks of lawyers.
This transparency does not remove the requirement for an investor to have independent English speaking legal representation however! Many estate agents and even vendors in Poland will advise the investor that it is not customary to have a lawyer involved in the property buying process – and this is in fact true - it’s usual for the whole transaction to be handled by a single notary. But those who come from outside of Poland to buy into the market and who neither speak Polish nor have great experience of the Polish real estate sector would be best advised to employ a lawyer.
Estate agents in Poland are very different to estate agents in the UK and realtors in the US for example – they work very hard for their buyer and often investors find that nothing is too much trouble and that estate agents in Poland seem genuinely concerned with finding the investor the right property deal. It is of course in an agent’s best interests to help the buyer as they pay their fees, and if the agent does a good job they hope to be recommended to other buyers. An estate agent in Poland can be worth their weight in gold because few properties are actively marketed as being for sale and local agents have a good working knowledge of the market and insider information about which properties are available for sale.
Once an agent has been drafted in to assist an investor they will likely be shown a range of real estate to match their specific objectives and desires. Anything that catches their eye can then be offered on and it is usual to make an offer directly to the vendor and to horse trade and haggle over the price and conditions of the sale. If an investor is considering buying older property in need of renovation they can arrange for a survey and for a quote on work needing to be done from a local building company. Such surveys and quotations have to be paid for by the investor.
As soon as a real estate buyer finds their ideal investment property in Poland and has agreed a price and conditions for the sale all parties involved in the sale will attend a public notary’s office and a preliminary contract will be drawn up which will list conditions of the sale, the sale price and the completion date. A buyer should ask to have included in the sale the stipulation that if the vendor withdraws from the sale they have to pay double the deposit back to the buyer. A 10 – 20% deposit will be paid at this stage and immediately the public notary and the investor’s solicitor should undertake title searches etc.
If all is in order with the property and all conditions for the sale are met the completion date will be kept and all parties will once again attend the public notary’s office for signing of the final contract. On the day the buyer will have to have the outstanding balance available and the vendor has to present a letter from the local council stating that there are no outstanding loans, debts or mortgages on the property. This letter has to be stamped and dated on the day of completion as it needs to be right up to date – this is because debts on property are attributed to the property and not the person who took out the debt – it is therefore very easy to buy debts accidentally in Poland.
In terms of fees, taxes and charges the buyer pays all fees including 2 – 2.5% notary and property tax fee, up to 7% VAT, lawyer, translator and estate agent charges which should be negotiated prior to securing their services.
|
