Ownership? Not so fast…
Law
In its amendment to the Act on converting perpetual usufructs into ownership rights, the Constitutional Tribunal has given greater freedom to local authorities in granting this right. Will this amendment affect the development of new projects or will it only affect the relationship between investors and local government?
The right of perpetual usufruct has been part of Polish law since the 1960s. The law states that the state or local government (city councils, boroughs and provinces) can grant a lease of land to an individual or a company (the perpetual usufructuary). The usufructuary has the right to dispose, sell or bequeath the property in his/her last will. The right of perpetual usufruct is temporary, and usually lasts from 40 to 99 years. The use of the property is also specified and annual fees for users are imposed. “The difference between the right of perpetual usufruct and ownership are mainly those three things – and these can restrict a developer’s plans. As a result, it might be the case that perpetual usufruct holders want to convert their right into an ownership title. And this is where the changes to the regulations effected on March 17th 2015, with the publication of the decision of the Constitutional Tribunal on the 2011 amendment
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