Legal Eye: Decoding title and mortgage registers
In Poland, however, ensuring that you have all rights to your property may require sleuthing more worthy of a Dan Brown thriller. The keys to unlocking the mystery of 'title' (whom the law deems to be the owner) are the 'ksi´gi wieczyste' or title and mortgage registers.
Every parcel of real estate, be it land or an apartment, should have its own title and mortgage register. It can be a goldmine of information, including a description of the property, the owner's name, and information on any mortgages or other encumbrances burdening the property. In an ideal world, you would only need to review the register to learn about title. In an ideal world, chocolate would have the same number of calories as a celery stick.
Destruction, computers and patience
The reality can be quite different. While it would be easy to blame the government, history has created many problems. In Warsaw in particular, the destruction of real property records in World War II, combined with the confiscation of property both during and after the War, have left huge holes in real property records. By now, however, most real property in Poland has a title and mortgage register.
Another complicating factor is that the registers are still primarily in paper form. The courts have been working to computerize the more than 16 million title and mortgage register books. The entire process is scheduled to last another couple of years. In the meantime, to produce an extract from a register, a clerk must flip through dusty volumes. Fortunately, the registers are public records, and you do not require any special authorization to review the information.
Patience is a virtue... especially if you want to record information in a register. If you decide to purchase an apartment with funding obtained from a loan backed by a mortgage, you will need to make at least two entries in the register. In Mokotów, you are looking at approximately six months before the entries are recorded. In Centrum, the waiting period is typically only one to two months because the registers are already computerized.
Bona fide purchasers
In the case of title and mortgage registers, a delay in recording information could potentially have legal consequences. The registers record who has 'title'. When I sold my old apartment, most likely, I figured as the owner in the register for that apartment for months after I had handed over the keys to the new owners.
The title and mortgage registers are documents of public trust, meaning that you may rely on the accuracy of the information in the register. Unfortunately, in Poland and elsewhere there have been instances in which someone has sold the same piece of property twice. In these extreme situations, the second buyer is protected as long as that person acted in good faith. Because of the long waiting periods for entries, the court will include information in the register about motions filed for changes in the register. It is crucial to verify that no motions are pending.
Old claims
No discussion of real estate in Poland would be complete without addressing the issue of claims of former owners. The Polish government has not yet enacted a law to deal with this issue. If, however, a claim has been made, it should be noted in the register.
Judith Gliniecki is the managing partner of Rymar and Partners.
Every parcel of real estate, be it land or an apartment, should have its own title and mortgage register. It can be a goldmine of information, including a description of the property, the owner's name, and information on any mortgages or other encumbrances burdening the property. In an ideal world, you would only need to review the register to learn about title. In an ideal world, chocolate would have the same number of calories as a celery stick.
Destruction, computers and patience
The reality can be quite different. While it would be easy to blame the government, history has created many problems. In Warsaw in particular, the destruction of real property records in World War II, combined with the confiscation of property both during and after the War, have left huge holes in real property records. By now, however, most real property in Poland has a title and mortgage register.
Another complicating factor is that the registers are still primarily in paper form. The courts have been working to computerize the more than 16 million title and mortgage register books. The entire process is scheduled to last another couple of years. In the meantime, to produce an extract from a register, a clerk must flip through dusty volumes. Fortunately, the registers are public records, and you do not require any special authorization to review the information.
Patience is a virtue... especially if you want to record information in a register. If you decide to purchase an apartment with funding obtained from a loan backed by a mortgage, you will need to make at least two entries in the register. In Mokotów, you are looking at approximately six months before the entries are recorded. In Centrum, the waiting period is typically only one to two months because the registers are already computerized.
Bona fide purchasers
In the case of title and mortgage registers, a delay in recording information could potentially have legal consequences. The registers record who has 'title'. When I sold my old apartment, most likely, I figured as the owner in the register for that apartment for months after I had handed over the keys to the new owners.
The title and mortgage registers are documents of public trust, meaning that you may rely on the accuracy of the information in the register. Unfortunately, in Poland and elsewhere there have been instances in which someone has sold the same piece of property twice. In these extreme situations, the second buyer is protected as long as that person acted in good faith. Because of the long waiting periods for entries, the court will include information in the register about motions filed for changes in the register. It is crucial to verify that no motions are pending.
Old claims
No discussion of real estate in Poland would be complete without addressing the issue of claims of former owners. The Polish government has not yet enacted a law to deal with this issue. If, however, a claim has been made, it should be noted in the register.
Judith Gliniecki is the managing partner of Rymar and Partners.
