Prior to purchasing any property it is always advisable to thoroughly verify its legal status – carry out due diligence. This should be done in order to avoid the risk of purchasing a heavily encumbered property or one from an unauthorized vendor.
Scope of our service of legal due diligence of real estate in Poland
- conducting full due diligence of the property in cooperation with relevant specialists, appraiser,
- gathering documents concerning the real estate, such as a copy from the Land and Mortgage Register,
- creating a comprehensive report on the basis of conducted audits.
Which aspects are included into property legal audit?
- ownership/legal title to property,
- third party contracts, possible claims arising therefrom, financial encumbrances (loans, mortgages, etc.),
- technical condition of the building, documents related to the construction process,
- zoning issues,
- profitability of the investment.
The general steps taken in order to perform a legal due diligence of a property:
- The primary stage consists of examining the land and mortgage registers that remain open to public inspection. They can be reached in the territorially competent regional court. Anyone is allowed to view them on the spot or obtain a certified copy. All the information included in the registers is of relevance – the owner, the area of the premises as well as the potential pending proceedings concerning the property.
- It is also important to obtain an extract from the geodetic land and buildings registry held at the relevant province starosty or municipal office, as it contains details on the plot of land, its owner etc. Should these records turn out to be inconsistent with previously obtained data from land and mortgage registers, they must be complemented and/or corrected.
- It is also recommendable to retrieve a copy of a local spatial development plan from the relevant commune office or municipal office. This document features information on the land development permissible on the given plot of land. If such plan does not exist, then we should reach for a potential decision on land development conditions – there we will find all relevant information on the foregoing aspects as well as the land use classification.
Furthermore, it often proves beneficial to make the effort and check if the property is not recorded in the Register of Historic Monuments, which might significantly narrow down its renovation prospects.
With our assistance you will acquire Polish real estate without hassle
Should you wish to discuss your company formation issues further, please do not hesitate to contact us. CGO Legal is an experienced legal partner with whom the achievement of your goals will be faster, safer and more comfortable.