Olga Połowianiuk-Sidorek | In Principle

Work is underway on a bill called the Act on Protection of the Rights of Acquirers of Residential Units or Single-Family Houses and the Developers Guarantee Fund (print 985). The bill was approved by the Sejm, the Senate adopted amendments, and the bill will now be reconsidered by the Sejm. Entry into force of the new act will impose additional new duties on developers. The aim is to better protect homebuyers against the loss of funds invested in residential developments, particularly when the developer becomes insolvent before the project is completed. Is the new instrument likely to fulfil its intended function?

All buildings designed and executed in Poland on or after 31 December 2020 will have to meet stricter standards for consumption of non-renewable primary energy and the U-factor for heat flow. This change implements into the Polish legal system EU regulations adopted in 2010. It might seem investors have had a long time to prepare for the new energy-efficiency standards. But many of them are still waiting for consideration of applications filed under the existing standards, and their applications may not be decided before the more stringent standards enter into force. This raises the question of how those pending applications will be decided.

The Act on Acquisition of Real Estate by Foreigners of 24 March 1920, which has been in force in Poland continuously for over 100 years, greatly limits the acquisition of real estate in Poland by foreigners, by requiring them to obtain prior consent from the Minister of Interior and Administration. Conclusion of a real estate acquisition agreement without a required permit is subject to the most severe sanction, resulting in invalidity of the transaction. However, the act permits certain departures from the strict requirement of ministerial consent.

Under the amended Construction Law in force from 19 September 2020, in a proceeding seeking legalisation of unlawful construction it will no longer be possible to seek consent to a variance from technical construction regulations, due to the express wording of the new Art. 9(5) of the Construction Law. Investors who had planned to legalise an unpermitted construction while obtaining a variance from technical regulations will not obtain such approval. The same applies to investors who filed a request before 19 September 2020 and were awaiting the minister’s position on the variance.

The coronavirus epidemic is generating new problems for parties to business transactions: restrictions on business operations, supply disruptions, limited availability of staff and materials, changes in the operation of public bodies and post offices. The downtime they cause has effects not only on civil-law grounds. In addition, there is the issue of expiry of administrative permits. Do the existing regulations, and the new Anti-Crisis Shield, offer any solution?