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Introduction
The legal process for selling a property is the same for selling as for buying. However, vendors should bear in mind certain things. Firstly, there is the question of when to sell to ensure that demand is strong and you get the best price; secondly, there is the challenge of marketing your property; thirdly, there is negotiation to ensure you get the best price and protect your interests; fourthly, there are certain specific legal obligations which sellers must fulfil; and lastly, there are selling costs which vendors are liable for.
The process of selling property in Poland
1. Market research
Before you do anything, check out the market. Unless you're forced to sell, steer clear of slumps when prices are depressed and perhaps consider letting out long-term until the market recovers as an alternative.
2. Preparing your house for sale
It is worth doing some research by consulting with local agents to get advice on how to prepare your home to increase its attractiveness to prospective buyers.
3. Advertising/finding a buyer
The normal means of marketing a property for sale in Poland is via an estate agent. If you used an agent to buy your Polish property, it could make sense to use the same one to sell it, as they will already know the property.
Estate agents' commission is generally between 3 and 5% plus VAT. It is usually payable by the vendor but in some circumstances the purchaser will agree to pay.
You can also sell privately without using an agent via websites and printed journals and magazines. The key advantage here is avoiding the high estate agents' fees.
4. Organising legal representation
It is mandatory to use the services of a notary when selling property in Poland . A Polish notary is a highly qualified lawyer who acts as a publicly appointed official and is neutral, acting for neither the interests of the purchaser nor those of the vendor. The notary's main role is to ensure that all taxes are paid and to register the property sale with the Polish land registry.
Vendors should therefore look to instruct a second lawyer to represent their interests. In theory this could be a qualified notary which, in theory, would not increase the selling costs as the fee is supposed to be fixed and divided between the notaries.
For foreign vendors it is important that the lawyer you instruct to represent your interests should be bilingual as well as having knowledge of both Polish law and the legal system in your own country. It is rare for Polish notaries to be qualified in this respect meaning that British vendors tend to use dually qualified British solicitors.
5. Negotiation of sale
It is important that you and your buyer are clear about which items are included in the sale and which are to be removed (in the case of off-plan property this will not be an issue). If any items are to be left behind, an inventory signed by both parties should be attached to the sales contract and the value of the items should be included in the sale.
Once both parties have agreed a price and what the sale relates to, an oral agreement for a sale on those terms is made. The oral stage of the real estate buying process is informal and not actually legally binding.
6. Signing a preliminary agreement
Once both vendor and purchaser are happy with the terms of the sale, a preliminary agreement is prepared by the notary and signed by both parties. The preliminary agreement sets out the actions which must be completed before a final sales contract can be entered into. These conditions will include such things as the buyer obtaining suitable finance and the seller making certain that the title to the property is free and clear of encumbrances and claims by third parties.
On signing, the buyer pays a deposit usually of 10 -20% of the purchase price, with the balance due in stage payments or on completion.
7. Completion
At the end of this period, the purchaser pays the balance of the purchase price to the vendor. The final contract is signed in front of the notary by both the purchaser and the vendor and then ownership of the property passes to the purchaser.
8. Land registration
After the balance has been transferred to the vendor and all fees and taxes have been paid, the deed of sale is registered at the Land Registry by the notary.
Sources & Resources
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