Up to 200 thousand PLN for an apartment. Thousands of families live in uncertainty

A bill has been introduced in the Sejm that is intended to finally sort out the legal situation of land used by housing cooperatives. The authors of the proposal assume the introduction of claims for the transfer of ownership or putting real estate into perpetual usufruct, as well as priority over reprivatization claims. According to experts, this may be the first solution to comprehensively end a problem that has been going on for many years.

The project provides that a cooperative which, on December 5, 1990, was the owner of land belonging to the State Treasury or a commune, will obtain a statutory claim to acquire ownership or perpetual usufruct. In the event of a conflict with reprivatization claims, the cooperative would have priority.

The land of housing cooperatives is to be regulated

According to the proposal, if the competent authority does not issue a final decision within 12 months of submitting the application, the case will be referred to the competent minister. However, after 24 months from the entry into force of the Act, if the legal status of the real estate is still not sorted out, the cooperative will acquire ownership or perpetual usufruct by operation of law. This is to eliminate the long-term delay of proceedings.

The project is a response to the situation of many cooperatives that for decades have been building housing estates on land transferred by administrative decisions, but without a formal transfer of ownership rights. As a result, residents of many buildings are still not fully sure about the legal status of the areas on which their houses are located.

Many years of disputes and high claims

One example is the “Koło” Housing Cooperative in Warsaw. Claims were filed against it, including compensation for the use of the land and a demand for its purchase. The total value of the expectations is approximately PLN 31 million plus interest. According to representatives of the cooperative, this would mean burdening residents with amounts ranging from approximately PLN 100,000. up to 200 thousand PLN per premises.

Experts point out that the current regulations do not contain effective mechanisms forcing authorities to act quickly. In the case of reprivatization disputes, proceedings are sometimes suspended or drag on for many years, leaving residents in a state of uncertainty.

What would change if the act came into force?

The adoption of new regulations would enable the regulation of the status of many real estate properties, as well as the establishment of land and mortgage registers for premises currently covered only by cooperative rights to the premises. This would make it easier for owners to use mortgage loans and trade in real estate more freely.

The project also assumes that former land owners would receive compensation of 20%. real estate values. This amount would be repaid as part of fees related to perpetual usufruct. According to supporters of the changes, the proposed solutions are more effective than the previously prepared government project because they contain specific deadlines and mechanisms ending long-term proceedings.