Annuity agreement

By means of an annuity agreement the real estate owner transfers the real estate ownership to another person in return for the right to live in this real estate for life as well as the right to lifetime maintenance.

If the new owner of the real estate does not fulfil the above-mentioned obligations, the life annuitant may request that the court change the life annuity for a pension. One should remember that, unlike a donation, a life annuity is not included in the inheritance. The value of the real estate transferred by the testator to the acquirer in return for lifetime maintenance is not added to the legitimate portion.

Information required for an annuity agreement:

Particulars of the parties to the agreement::

  • - first name, - surname, parents’ first names, - identity card’s series, number and validity date, - Polish Resident Identification Number (PESEL), - marital status, - excerpt of a notarial deed documenting an agreement on marital property (if marriage of the party to the agreement is governed by a contractual marital property regime), - residence address,
  • subject of the annuity agreement,
  • value of the subject of annuity,
  • information on release of the subject of annuity.

Documents required for the agreement:

  • identity card or passport,
  • basis for the acquisition of real estate if the basis for the acquisition in the case of natural persons is:
    • inheritance, ordinary legacy, subsequent legacy, specific bequest, testamentary instruction,
    • donation, donor’s instruction established after January 1, 2007,
    • adverse possession,
    • gratuitous cancellation of joint ownership established after January 1, 2007, it will also be necessary to provide the following:
  • certificate issued by the competent Head of the Tax Office on settling the tax on inheritance and donations as regards acquisition of the subject of the action on the above-mentioned basis.

Moreover, if the subject of the agreement is a real estate constituting a developed or undeveloped plot of land:

  • a certificate informing about the intended use of the real estate in the local spatial development plan or a decision on land development and management conditions,
  • extract from the land register containing a clause stating that this document serves as the basis for making an entry in the land and mortgage register,
  • should there be any discrepancy between the description of the real estate in the land and building register with the land and mortgage register or in the event of separation of a part of the real estate - an extract from a property map containing a clause for the purpose of making an entry in the land and mortgage register.

Costs

1. Each time the notarial fee is determined individually.
The maximum rates are provided for in the Regulation of the Minister of Justice of June 28, 2004 on the maximum rates of notarial fees.

2. Tax on civil law transactions amounting to 2% of the real estate’s market value.

3. Court fees when a land and mortgage register is maintained for the real estate amounting to PLN 350, including PLN 150 for entry of the annuity right into the land and mortgage register and PLN 200 for entry of the ownership right into the land and mortgage register.

4. Notarial fee for excerpts amounts to PLN 6 net (PLN 7.38 gross) for each started page.