Transformation – by force of law – of perpetual usufruct into ownership has, from the very beginning, caused a number of problems, e.g. with determining what land was subject to transformation. According to the Polish Association of Real Estate Developers (Polski Związek Firm Deweloperskich), the Ministry of Labor, Development and Technology has decided to clarify ambiguities in the interpretation of the term “real property” used in the transformation act.
According to its provisions, on January 1, 2019, the legislator transformed the right of perpetual usufruct of land developed for residential purposes into the right of its ownership. At the same time, the transformation was also subject to BUILDING OBJECTS AND FACILITIES PROVIDED FOR LEGAL AND RATIONAL USE OF RESIDENTIAL BUILDINGS.
Recently, the said Ministry has taken a stand, The Ministry recently took the position that when interpreting the term “real estate” as used in the above mentioned Act, one should refer to its land and mortgage register meaning – i.e. the appropriate development of one registered plot of land leads to a transformation of the right attached to the entire real estate for which a land and mortgage register has been established.
However this kind of INTERPRETATION IS NOT A SOURCE OF LAW, therefore for the certainty of its application in trading it would be advisable to amend the Act.