Property law: The process of expropriation for road development purposes
The general rules and proceedings for expropriation are set forth in the Act on Real Estate Management of August 21, 1997. A few other specific acts also affect the process, such as the Act of April 10, 2003 on the Specific Rules for the Preparation and Making of Investments in Relation to Public Roads, which sets out a specific procedure for taking over real properties to be used for the development of public roads.
Under the Act of April 10, 2003, expropriation procedures have been streamlined in order to ensure that there is sufficient time for road development. As a result, the State Treasury - as well as the authority in charge of road management (the General Directorate of Roads and Highways or the Public Roads Administrator) - may obtain the title to real properties under a simplified proceeding.
Consequently, issuing a decision on the routing of a road is not subject to a prior attempt to negotiate and conclude a sale agreement with the real property owner. Moreover, the decision on the routing enables the real property to be used directly for development purposes.
Decision on the routing of a road
The expropriation of real property for road development purposes takes place on the basis of a decision on the routing of a road, issued by the voivod (with respect to national and voivodship roads) or the county president (with respect to county and gmina roads) after an application has been sent by a road administrator. Under this decision, the project to divide the real properties is approved, and the lines dividing the land, as stated in the decision, become the real estate's borders following the division.
The decision on expropriation is then sent to the real property owner at the address specified in the Land Registry and an announcement is published in the local press and placed on display at the relevant public offices. The decision should establish a deadline (of not less than 30 days) by which the former owner is obliged to vacate the occupied premises or plots. Until the building permit is issued, the property can be used by the former owners.
In the event that only part of the real property is expropriated, the owner is entitled to demand that the remaining part be expropriated where such parts can no longer be used for their previous purpose.
Where to appeal
The owner of the property is entitled to lodge an appeal against the location decision with the voivod, if the decision was issued by the county president, or with the Ministry of Infrastructure, if the decision was issued by the voivod. This appeal has to be considered within 14 days.
Furthermore, a decision rendered by the public administration authorities may also be appealed at the Administrative Court. This appeal has to be considered within two months.
On the date upon which the decision becomes enforceable, the real property becomes the property of the State Treasury (with respect to national roads) or a local government unit (with respect to voivodship, county and gmina roads).
Compensation
Compensation is granted in a separate administrative decision, issued by the county president, in which the amount of compensation is precisely stipulated. The compensation is determined based on the condition of the real property on the date on which the decision on the road routing was first issued. Compensation is subject to the value of the real estate on the day when the decision on the amount of compensation was issued.
The valuation of the real property is made pursuant to the Act dated August 21, 1997, on Real Estate Management as well as the Regulation of the Council of Ministries, dated September 21, 2004. The amount of compensation is calculated on the basis of the market value of the real property, which is the sale price most likely to be obtained on the market, based on recent transaction prices.
The decision on compensation may also be appealed. The filing of an appeal does not delay payment of the compensation. If the appeal proceeding is resolved in favor of the previous owner, the compensation is brought in line with the ruling issued. Once a decision on routing becomes final, the owner should obtain compensation within 14 days.
Expediting the process
The development of roads in Poland is a delicate issue for all levels of government, regardless of their political orientation. In light of the upcoming Euro 2012 soccer championship and the growing number of cars on Polish roads, it can be said that Poland has reached the point at which it can no longer wait to improve and construct roads.
One of the major obstacles impeding road construction is the inefficient expropriation of real properties set aside for public roads. However, under the above simplified regulation, the authorities now have a tool that enables them to expedite the expropriation process. All that remains is to construct the new roads.
Ewa Kraszewska is a legal advisor at Garrigues' Warsaw Office
Adriana Andrzejewska is an apprentice attorney and lawyer at Garrigues' Warsaw Office in the real estate department
