Legal Highlights for Real Estate – July 2024
Amendments to the Law on Real Estate Management with regard to the betterment fee
A committee draft bill on amendments to the Real Estate Management Act (“u.g.n.”) was referred to the Infrastructure Committee and the Local Government and Regional Policy Committee for first reading. It contains a key change concerning the regulation of the betterment levy determined under Articles 98a and 145 of the u.g.n.
According to Article 98a u.g.n., the betterment fee may not be set in an amount greater than 30%, calculated between the difference in value of the real estate before and after the division. At the same time, the municipality must first adopt a resolution on the determination of the betterment levy, since only on its basis can it then possibly impose an obligation on the person making the division of the property to pay the amount to the municipal council. A prerequisite for this is the indisputable demonstration that as a result of the division of the property made at the request of the owner or perpetual usufructuary, its value will increase, and the difference in value of the property is determined on the basis of an appraisal report, which is usually prepared by an expert, commissioned by the municipal council, which is confronted with the report of the person making the division.
Currently, the initiation of proceedings to determine the betterment levy may take place within 3 years from the date on which the decision approving the division of real estate became final or the ruling on the division became final. However, according to the wording of the proposed amendments, this period is to be shortened to 18 months.
In turn, according to Article 145 u.g.n., the mayor of a village, town or city may, by way of a decision, establish an ad valorem fee each time conditions are created for connecting the real estate to particular equipment and technical infrastructure, or conditions are created for using the constructed road. In the current wording, the time limit for initiating proceedings to determine such a fee was also 3 years, and here, too, the amendment envisages reducing the time limit to 18 months.
As results from the justification for the draft, the current deadline for initiating proceedings is too long. At the same time, it was pointed out that such a situation creates a great deal of uncertainty among property owners, restricts their freedom to shape their household budget and creates a sense of distrust in the State.
New Decree of the Minister of Development and Technology: key changes in spatial planning
The Journal of Laws published a decree of the Minister of Development and Technology dated 15 July 2024 on how to determine the requirements for new development and land use in the absence of a local zoning plan, which will significantly affect spatial planning in Poland.
The regulation specifies how to determine in the decision on development conditions the requirements for new development and land use in the absence of a local spatial development plan, including the requirements for determining:
- building lines,
- maximum development intensity,
- minimum and maximum above-ground development intensity,
- the share of development area,
- width of the front elevation,
- building height,
- roof geometry (angle of inclination and roof slope arrangement),
- the minimum proportion of biologically active area,
- minimum number of parking spaces.
The decree entered into force on the day following its promulgation, i.e. 26 July 2024.
