Sale of real estate

In the light of the provisions of law, transfer of a real estate ownership requires the form of a notarial deed.

Sale agreement is an agreement obliging to transfer the ownership of a real estate against payment from the seller to the buyer. One of the parties to the agreement (the Seller) shall transfer the ownership of a real estate or the right to the other party and deliver the goods to that party, the other party to the agreement (the Buyer) shall pay the selling price and collect the goods in return.

Required information:

  • particulars of the parties to the agreement:
    • In the case of natural persons: - 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,
    • in the case of legal persons: - company, - particulars of the representatives, - number of entry into the National Court Register (KRS), - Tax Identification Number (NIP), - Polish Business Registry Number (REGON), -registered address,
  • (market) price, time limit for payment and release of the subject of the sale agreement, and a method of payment,
  • subject of sale.

 Documents required for all sale agreements:

  • in the case of natural persons: identity card or passport,
  • in the case of legal persons: the company’s articles of association or the statutes, resolutions and approvals of authorities necessary to conclude the agreement, if required by relevant provisions of law or by the articles of association/charter,
  • 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,.
  • certificates 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.

Additional documents required in connection the subject of the agreement:

1. cooperative member's right to residential premises without a land and mortgage register:

  • certificate issued by a housing cooperative informing who is entitled to the premises being the subject of the donation,

2. Real estate constituting a developed or undeveloped plot of land:

  • valid extract from the land register together with an extract from a property map for all the plots of land included in the land and mortgage register, issued by the staroste competent with regard to the real estate’s location. The above document specifies,
  • among others, the location, current area and boundaries of the plot of land, buildings built on the plot are shown there. The document is necessary to correct the plot’s designation in the land and mortgage register and to separate the plot from the land and mortgage register and to establish a new land and mortgage register for it,
  • extract from the land register should be provided with a clause for the purpose of making an entry  in the land and mortgage register,
  • should there be any discrepancy between the real estate’s description in the land and building register and the land and mortgage register or in the event of separation of a part of the real estate - the extract from a property map should be provided with a clause for the purpose of making an entry  in the land and mortgage register,
  • in the event that the real estate has been created as a result of a division - an extract from a property map should be provided with a clause for the purpose of making an entry in the land and mortgage register, and a decision approving the real estate’s division,
  • valid extract from the local spatial development plan for the acquired plot of land (issued by the commune office competent with regard to the real estate’s location). This document confirms the purpose of the plot in the local plan adopted by a given commune, confirming, inter alia, that the plot of land is a construction plot, specifying the development conditions in a given area, providing information if there are any specific requirements for activities on this real estate, or a decision on land development and management conditions,
  • certificate confirming that the plot of land is not situated in the area of revitalization or in the Special Revitalization Zone (issued by the commune office competent with regard to the real estate’s location). The above document is necessary because by means of a resolution the commune council may establish a pre-emption right to all the real estates located in the revitalization area, and if an agreement is concluded which ignores the pre-emption right reserved for the commune, the agreement  shall be invalid,
  • certificate stating that the plot of land is not located in the area for which a simplified forest management plan has been drawn up or a decision has been issued specifying forest management tasks (issued by the staroste competent with regard to the real estate’s location). The above document is necessary because in the case of a sale of a plot of land covered by a simplified forest management plan or a decision, the State Treasury, represented by the State Forests, has a right of pre-emption in relation to the given plot, and if an agreement is concluded which ignores the pre-emption right reserved for the State Forests, the agreement shall be invalid.

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.
The cost of concluding a real estate sale agreement depends, among others, on the type of the real estate sold and the market value of the subject of sale
For example:

  • if the value of a cooperative member's ownership right to residential premises amounts to PLN 300,000.00, pursuant to the Regulation of the Minister of Justice on the maximum rates of notarial fees, the maximum notarial fee will be PLN 985 net (+ 23% VAT),
  • if the value of a real estate developed with a single-family house amounts to PLN 500,000.00, pursuant to the above-mentioned Regulation, the maximum notarial fee will be PLN 1385 net (+ 23% VAT).

Contact me to determine the notarial fee related to the real estate donation agreement.

2. Taxes related to the purchase of real estate
The sale of real estate is subject to tax on civil law transactions. The tax obligation arises upon the agreement’s conclusion and shall be borne by the Buyer. The tax base is the market value of the real estate. In the case of real estate sale the tax rate is 2% of the real estate value

3. Court fees related to the purchase of real estate
Depending on the legal structure of a given real estate and designation of the real estate in the land and mortgage register, it may be necessary to make other entries in the land and mortgage register. As an example we can mention correction of real estate designation in the land and mortgage register or separation of a plot of land from the land and mortgage register and establishment of a new land and mortgage register for the plot of land.

The court fee rates are provided for in the Act of 28 July 2005 on court costs in civil cases:

  • ownership registration - PLN 200,
  • separation of real estate or a part thereof and establishment of a new land and mortgage register for it - PLN 100,
  • correction of real estate designation in the land and mortgage register - PLN 100.

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

Are all the fees paid directly to the notary public or does one have to remember to settle stamp and court fees by oneself?

All public law fees required for the purchase of real estate are calculated by the notary public and paid with the intermediary of the notary public. After such an agreement has been drawn up, the notary public transfers the amounts due together with relevant declarations, within the time limits specified by the law, to the competent tax office (tax on civil law transactions) and to the land and mortgage register court (court fees).

Contact our Notary’s Office to get information about the above fees’ amount.