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FAQ

What is the guarantee, what does it cover and how long does it last?

The guarantee (PL: ‘rękojmia’) is the statutory liability for physical defects of the real estate that rests on the developer towards the buyer. For properties built after December 25th, 2014, the guarantee takes 5 years, and for earlier built estates its 3 years.

Physical defects are situations when the subject of the contract:

– does not have properties that this type of property should have due to the purpose specified in the contract or resulting from the circumstances or destination – e.g. the premises intended for living have inadequate thermal insulation, which causes a significant drop in temperature,

– it does not have properties about which the seller has ensured the buyer – e.g. in terms of sound insulation,

– it is not suitable for the purpose about which the buyer informed the seller when concluding the contract, and the seller did not raise any objections to such a purpose – e.g. the premises was agreed to be arranged for a recording studio,

– has been delivered to the buyer in an incomplete state – e.g. missing parts of the real estate covered by the contract.

What is the difference between a lease agency service and a real estate lease management service?

This is a complex issue because both services are similar to each other, but only until the agent finds a tenant. After signing the lease contract and handing over the apartment to the tenant is the point where the role of an intermediary agent ends and the work of property managers begins. It is worth to emphasize that after finding a potential tenant, a lease agreement may not be signed; it may happen when a potential client has specific requirements that determine the conclusion of a lease, and the owner is not ready to agree for them. However, in case when the owner of the apartment accepts the additional requirements submitted by the Lessee, including, for example, retrofitting the apartment or arranging wall painting; then, based on the concluded management contract, Leach & Lang managers organize the adaptation of the apartment in accordance with the arrangements accepted by both parties of the lease agreement.

Thanks to concluded management contract, the owner of the apartment does not have to be on site and does not have to deal with the organizational and technical issues related to the premises on his own, because at Leach & Lang we arrange all these issues in frame of our management services. Minor additional services are included in the basic care of the apartment; and those that require more commitment are possible to arrange as additional service.

As part of the management service, on behalf of the owner, we maintain contacts with the building administration (e.g. regarding obligatory inspections, adopting resolutions by the Resident Community), monitor payments from tenants, and organize inspections of the technical condition of the apartment. The management office, at the request of clients, can also take care of additional tasks, such as: preparation of tax settlements and insurance policies of the property.

The owner of the apartment who is using only the agency service (without management services), after signing the lease contract, must be aware of the fact that the tenant will contact him during the term of the contract, in every matter related to the proper functioning of the equipment and installation in the apartment; such as, for example, replacement of the gasket or battery, leakage of the installation, jammed lock, malfunctions of household appliances, short circuit of the electrical system. All the above activities, included in the scope of lease management service, will then require from the landlord commitment of his time, availability and often physical presence with at the tenant`s.

Implementing the management service guarantees the owner that the above described matters related to the care of the proper technical condition of the apartment will be dealt with on an ongoing basis, by a qualified team of experienced people with specialist knowledge, and with the participation of a network of proven professionals cooperating with them. Leach & Lang also employs a maintenance technician who carries out ongoing repairs at the request of property managers and the client.

The Management Department at Leach and Lang is proud to have many years of experience and provides its services from the very beginning of the company’s establishment; currently servicing a total of over 1,000 apartments in Krakow and other larger cities in Poland; we are also one of the first companies to offer specialized rental management services in Poland. Throughout all the years of our activity, we have developed proven and effective operating procedures at Leach & Lang, thanks to which we can provide our clients with the highest level of rental management services. For many years, foreigners have been an invariably significant part of the group of clients serviced by Leach & Lang.

Power of Attorney for sale from a foreigner, translation of a PoA.

A party of the real estate purchase or sale transaction may be represented by an attorney, i.e. a person authorized to conclude a contract on behalf of the real estate owner. Transactions involving an attorney constitute a significant part of contracts concluded through Leach & Lang, as well as are widely practiced on the real estate market.

In the case of a power of attorney issued outside the territory of the Republic of Poland, additional legalization is required, i.e. confirmation of the document’s authenticity. In case of countries that are signatories to the Hague Convention, the legalization of documents takes place by obtaining the Apostille clause. All documents issued in a foreign language must be translated and certified by an authorized sworn translator in order to be admitted to legal circulation in Poland. At Leach & Lang, we provide professional advice on the organization of a power of attorney and its translation also for foreigners.

Notarial deposit

One of the safest methods of securing both parties by a real estate purchase/ sale transaction is a notarial deposit.

A notary public, as a person of public trust, may accept funds into a notarial deposit in order to release them to a designated person, after performing a specific action, such as signing a deed transferring ownership of real estate. This form of security guarantees the seller that the buyer has the necessary resources to conclude the contract; at the same time, the buyer also minimizes the risk because he does not have to pay the funds directly to the seller before concluding the sale contract. In case when the transaction is not finalized, the funds deposited at notary`s are returned to the buyer. All arrangements related to what will happen to the deposited funds are regulated by the notarized acceptance protocol.

At Leach & Lang, we quite often conduct transactions where our clients decide to use this method of paying the price for the purchase of the real estate.

Rental tax

Property rental tax can be settled in several ways: as a private rental or as a part of business activity. Persons renting apartments privately can pay it in two ways: – lump sum: the tax rate is 8.5% and is calculated on the income (if the rental income exceeds PLN 100,000 per year, then the tax rate will be 12.5% ​​and is calculated on the surplus above this amount),

– on general rules: the tax rate is calculated on the obtained income (after deduction of costs); there are two tax thresholds: 17% and 32%. The rate for the lump sum is more favorable, however, it should be considered that the costs related to the maintenance of the property cannot be taken into account in this form.

Until recently, the choice of the form of taxation required to be reported in the form of a declaration to the competent tax office. Currently, the first rental tax payment is considered as the equivalent to choosing the form of taxation. The payment should be made by the 20th day of the month following the month in which the landlord obtained the first rental income. If the landlord has not chosen the flat-rate form of settle, it will be automatically billed on general terms.

Documents required to sell the apartment.

When making an appointment for sell and purchase agreement, it would require minimum of approx. 1 week to arrange the documents needed to close the transaction. In case of mortgage-laden flats or co-operative owned flats (co-operative ownership right of a flat), this period may be even longer.

For the contract regarding transfer of ownership of the apartment, it`s required to deliver:

– deed of purchase/ document confirming the ownership/ land and mortgage register number of the flat;

– a certificate proving either the number of people or no one being checked in the apartment – which is issued in the appropriate office. Applying for the certificates may be done in person or by a proxy holding a power of attorney (original available for inspection, copy attached to the application). The application may also be submitted in writing and send by mail or in the form of an electronic document send via an electronic inbox on the e-PUAP platform (public platform for electronic communication),

– certificate of no tax arrears – is issued in the appropriate office.

Application for the certificate may be made in person or by proxy, it may also be submitted in the forms described above,

– certificate of no arrears in administrative fees – issued at the building / investment administrator,

– certificate of the current debt status – this document is required in case when the property is mortgaged and the seller decides not to repay the loan before the sale agreement. It is issued by the bank where the mortgage for the apartment was taken out. It should include:

  • amount of the outstanding debt, including interest, additional fees and commissions, eg in the event of early loan repayment.
  • account number for payment of receivables,
  • bank declaration in which it agrees to remove the mortgage as soon as the entire liability is settled.

In some cases, when there are inaccuracies, e.g. in the land and mortgage register, additional documents may be required to settle the legal status of the real estate. These can be, for example, birth and marriage certificates or excerpts from the land register.

Cooperation with a real estate agency – what are the benefits for the seller and for the buyer / tenant and landlord?

Selling, buying or even renting an apartment is a huge undertaking, and sometimes even a  finial of a longtime dreams. These kind of decisions usually involve considerable financial outlays and therefore it is worth to consult a qualified expert who will help us safely go through the entire process and give a support of a specialist knowledge and experience.

We present below some of the most important benefits of working with an agent when selling / renting real estate:

  •  professional and objective evaluation of the property, its advantages and disadvantages, which enables the most optimal property valuation and converts into financial satisfaction and affects the real time of sale / rental,
  •  professional photos of the real estate and reliable presentation of the offer on many real estate portals, which gives better visibility of the offer on the market and leads to increasing  the number of customers interested in the offer,
  •  own database of clients looking for a real estate,
  •  assistance in negotiations and in organizing the documents needed to complete the transaction; assistance in solving possible problems in case of inaccuracies or errors related to property ownership.
  •  support and advice on preliminary and final contracts; preparation of rental agreements and reservation agreements.

Advantages of cooperation with agency when buying / renting real estate:

  •  own database of real estate for purchase, enabling the best match of the property to the client’s preferences,
  •  investment advisory,
  •  assistance in negotiations,
  •  checking the legal status of the property and coordinating the purchase / lease process,
  •  support and advice on rental, reservation, preliminary and final agreements,
  •  possibility of continuing or supplementing the cooperation, including its rental, property management as well as its finishing (design and execution), thanks to a comprehensive offer tailored to the expectations of customers.

To sum up, Leach & Lang as a real estate agency supports implementation your real estate plans and comprehensively secures the transaction process. Since we operate in a very wide range of services related to real estate transactions and management, as well as purchase financing, you do not need to look for a separate company that will check your creditworthiness, organize property management, interior finishing, tax settlement or insurance; because all of this can be organized for you by our highly qualified specialists.

Finally, it should be mention that when choosing a real estate agency, it`s worth to verify company`s experience and reputation – Leach & Lang has been operating on the Polish market for over a dozen years, advising from the beginning in a wide area of a ​​real estate market issues. Our success as well as unquestionable position are evidenced by a wide group of satisfied customers. We are also leaders in real estate management services for individual and institutional clients in Poland; as well as we carefully observe the latest trends on the market and on these basis we implement innovations in order to offer the highest level of services to our clients.

Buying a mortgaged property on the primary market.

Buying an apartment from a developer is a complex topic, as it often concerns real estate that is still under construction. Due to this specificity, the Buyer (natural person) is protected by the so-called The Property Development Act (Act of September 16, 2011 on the protection of the rights of the buyer of a flat or single-family house, Journal of Laws of 2011, No. 232, item 1377), regulating in detail the process of purchase/ sale of newly built real estate. You can find more information on this topic  here.

Currently, the vast majority of developers use an investor loan, taken for the implementation of a given development project. When buying an apartment from a developer who is using a loan for his development project, it should be remembered that in the context of the loan, the contract signed with the developer should contain:

  • information about the crediting bank and the amount of the loan granted to it,
  • a declaration of the bank’s consent to the unencumbered separation of the premises being the subject of the contract after payment of the entire price specified in the contract (in the form of e.g. a declaration by the Developer or a general promise of the bank),
  • information about the escrow account to which the deposited funds will be deposited.

After paying the full price by the purchasing party, the developer provides the final agreement with a relevant consent for a non-encumbered separation of the premises to be purchased.

The subject of the real estate purchase contract and the issues related to this process are much more complex, and each situation is different. It often consists a threads requiring separate analysis. To get individual analysis and/or detailed information on this subject, please arrange a meeting with experts from Leach & Lang.

Purchase of an apartment with a mortgage – secondary market.

In case of buying an apartment on the secondary market, the basic step is to analyze the content of the Land and Mortgage Register, which should always be done by a real estate agency before taking any further steps regarding the offer. We are particularly interested in sections III and IV of the Land and Mortgage Register.

If the seller purchased the apartment using a loan, at Leach & Lang we always make sure that he provides a certificate from the crediting bank about the current amount remaining to be repaid. Part of the sale price will then be transferred directly to the lender so that he agrees to cancel the mortgage securing the repayment. Information on the amount of this payment is also necessary for the Notary’s Office preparing the final sale agreement, as it should describe in details the method of repayment the price.

Besides the amount of debt, such certificate should also confirm the amount of any additional fees (resulting, for example, from early loan repayment), as well as information about security take off and the date on which it will occur after the payment of the obligation. The bank is obliged to issue such certificate to the seller for the sale transaction, and once the debt is repaid, the bank grants its consent to cancel the mortgage.

At Leach & Lang, we pay special attention to loans in foreign currencies. It may happen that the outstanding amount exceeds the transaction value of the property, however, it is worth to be aware that such situation should not be the reason for resignation from the transaction. Before the final contract, the seller must settle the difference between the price paid by the buyer and the value of the outstanding amount. At Leach & Lang, we have worked on numerous transactions of this type, when a larger group of foreign investors decided to sell their residential properties through our company.

In terms of the time required to buy a mortgage-free property, it does not differ significantly from the average time it takes to buy a mortgage-free property. The difference is due to the need to obtain the relevant documents from the lender, necessary to properly close the transaction in a safe way for the buyer. It is crucial that the buyer cooperates with a proven expert throughout the process, who will keep you informed about the sequence of actions, risks or benefits resulting from given solutions.

Because each transaction has its own characteristics and requires individually fitted actions in order to finalize it, for the benefit of both parties, consultants from Leach & Lang with many years of experience will provide you with all necessary information about the process, taking into account individual features of the offer, on the purchase or sale of a  property encumbered with a mortgage.

What documents are required to sell a plot of land.

The following documents must be submitted for the sale of land at the Notary’s Office:

– an excerpt from the Land and Mortgage Register or an indication of the Land and Mortgage Register number of the real estate,

– the basis for the purchase of real estate (notarial deed),

– an excerpt from the Land Register including the note that it is the basis for an entry in the Land and Mortgage Register,

– an excerpt from the record map – if the plot is detached from the Land and Mortgage Register to the newly established one, including the note that it is the basis for an entry in the Land and Mortgage Register,

– a certificate from the Regional Office about the purpose of the plot in the Local Spatial Development Plan or about its absence,

– a certificate of the plot being covered by a Simplified Forest Management Plan or a decision of the Starost referred to in Art. 19 paragraph 3 of the Forest Act,

– a certificate which will show whether the plot is located in the area for which the Commune Council has adopted a resolution on revitalization, a degraded area or a Special Revitalization Zone.

 

Additionally, if the plot is purchased in a form other than purchase (e.g. inheritance, donation), in addition to the above-mentioned documents, the following statements will also be necessary:

– a decision confirming the acquisition of an inheritance or an inheritance certificate,

– in case of acquisition of real estate in inheritance, a donation (after January 1, 2007), free dissolution of joint ownership or prescription, additionally must be obtained a certificate from the Tax Office confirming that the acquisition was tax-free or that the tax was paid.

The above list may be modified depending on the final verification of the legal status of the real estate, therefore the notary may require additional documents. During the execution of the transaction by Leach & Lang, we always offer our clients full coordination of the transaction, including obtaining documents for the transaction (based on the appropriate power of attorney from the seller).

How to sell a property without paying an income tax?

The sale of a real estate before the lapse of 5 years since its purchase, used to be associated with the obligation to pay the personal income tax in the amount of 19%, calculated on the increase in the value of the real estate.

The condition for exemption from this obligation was to spend the funds obtained from the sale for the implementation of own housing purposes within 2 years from the end of the tax year in which the real estate was sold. At the moment, the amendment extends this period to 3 years, and moreover, it`s allowed to take advantage of the tax exemption in additional cases.

New rules introduced for inheritors of real estate, are much more favorable than before the entry of the current regulations. Pursuant to the new rules, the 5-year period after which the inheritor is released from the obligation to pay income tax when selling the inherited property is to be counted from the date of purchase of the property by the testator. To put it simply, if the testator has acquired real estate min. 5 years before the property was awarded to an heir, the heir may sell the property immediately after inheriting it, without paying any income tax.

So far, the 5-year period had to be counted from the date of the testator’s death. Thanks to the introduced change, in most cases heirs will be able to sell the real estate without paying income tax.

The new rules are also more favorable to property sellers widowed and divorced. Persons with this status will be able to sell the property without income tax within 5 years from the date of its acquisition to the joint property. Until now, 5 years had to be counted from the date of the spouse’s death or division of the joint property after divorce.

The new rules apply to the revenues earned after January 1, 2019. Therefore, the moment of sale of the property is crucial, not the date of its purchase. The change applies to all sellers who decide to sell the property after December 31, 2018.

What does the real estate civil liability insurance cover against?

According the applicable law, the activity of a real estate agent is not covered by the obligation to insure against civil liability and is therefore voluntary. This insurance applies to natural persons; covers not only entrepreneurs running a business, but also employees, associates and subcontractors of the intermediary, if they perform their duties under his supervision.

The third party liability protection covers damages resulting from the insured’s actions or omissions resulting from the intermediary’s activities.

Therefore, the third party liability insurance will cover damages resulting from improper performance of the contract, its non-performance, as well as from unauthorized activities related to the intermediation activities performed.

Compensation also covers the effects of actions arising as a result of failure to comply with ethics and professional standards, as well as as a result of the intermediary’s failure to perform due diligence appropriate to the profession; as well as acting against the principle of protection of the interests of persons for whom the intermediary performs activities.

An example may be the situation of insufficient verification of the legal status of the real estate being the subject of the transaction. In such case, the buyer may be exposed, for example, to the inability to develop the land due to the rights or claims of third parties, or financial losses due to the need to transform or adapt the property to the requirements of the regulations (e.g. if the building does not have an occupancy permit or was built without a permit for use).

In order to obtain compensation for losses under the third party liability policy, it should be reported to the insurer and prove not only the scope of the damage, its amount and the fault of the intermediary, but also specify how the intermediary’s action led to the damage (cause-and-effect relationship).

Previously when the state real estate broker license was obligatory, the broker liability insurance was also obligatory, but it is not obligatory presently. Regardless, at Leach & Lang we treat having such a license as our obligation, providing our clients with a greater sense of security in cooperation with us.

According to the regulations, the protection of civil liability does not apply to contractual penalties, material damage caused to relatives, as well as damages resulting from hostilities, riots and acts of terror.

Developer warranty, what does it cover and how long does it last?

In case of real estate transactions at the primary market, the regulations oblige the developer to provide the Buyer with legal protection in the event of physical defects of the real estate. Its obligatory element is a 5-year guarantee (PL: ‘rękojmia’), which, however, does not have to be the only tool that the Buyer can use. As a supplement to the protection against technical defects of the premises, many developers offer Buyers an additional tool in the form of a warranty (PL: ‘gwarancja’).

The provision about this additional protection should be included in the developer agreement and contain information about the warranty period, its scope and any limitations. If the warranty period is not specified in the contract, it is assumed to take two years.

The warranty may apply to the whole apartment, its specific part, or cover only selected elements that will be specified in the contract.

It is worth remembering that the limitation of the warranty usually applies to interference with the substance of the building or existing installations – so any modifications will be associated with the risk of losing the protection. Also in a situation when the finishing works of the premises are carried out contrary to the art of construction and the principles of technical knowledge, or if they are carried out with the use of finishing or construction materials with incorrect properties, the warranty protection will most likely not apply.

If the Buyer wishes to either obtain compensation for the disclosure of physical defects in the premises or to have them removed at the developer’s expense, the Buyer may decide which of the two available tools he would like to refer to.

As the warranty is not a mandatory mean of protection and is a voluntary obligation of the developer, it undoubtedly increases the customer’s sense of security as to the technical condition of the property and proves the liability for the subject of the contract, which the developer assumes in case of revealing physical defects of the premises.

What is the guarantee, what does it cover and how long does it last?

The guarantee (PL: ‘rękojmia’) is the statutory liability for physical defects of the real estate that rests on the developer towards the buyer. For properties built after December 25th, 2014, the guarantee takes 5 years, and for earlier built estates its 3 years.

Physical defects are situations when the subject of the contract:

– does not have properties that this type of property should have due to the purpose specified in the contract or resulting from the circumstances or destination – e.g. the premises intended for living have inadequate thermal insulation, which causes a significant drop in temperature,

– it does not have properties about which the seller has ensured the buyer – e.g. in terms of sound insulation,

– it is not suitable for the purpose about which the buyer informed the seller when concluding the contract, and the seller did not raise any objections to such a purpose – e.g. the premises was agreed to be arranged for a recording studio,

– has been delivered to the buyer in an incomplete state – e.g. missing parts of the real estate covered by the contract.

What happens if the developer fails to remove the defects in the premises?

If the developer does not accept the indicated defects, the Buyer has several options. In case of significant defects, he may withdraw from the sales contract. In another situation, the buyer may demand a price reduction or removal of the defect. Any communication with the developer should be taken in writing, so it is important to include e-mail addresses of the both parties in the sales contract. If the developer and the buyer fail to reach an agreement, the Buyer can pursue claims in a cou

What is submission to enforcement as to payment of the price and delivery of the property?

Both in times of dynamic economic growth as well as in the cycle of a slightly weaker economic situation, many property owners ask themselves the question, how can they protect themselves in a matter of the price payment and the delivery of the property? One of the most frequently used solutions is to include in the contract a clause on submission of the buyer or the tenant to enforcement under a notarial deed pursuant to Art. 777 par. 1 point 4 or 5 of the Code of Civil Procedure. By referring to this legal act, such declaration can not only secure the payment of the price, but also the handing over of the property.

In practice, the provision allows the selling party to significantly shorten the legal path of pursuing the exercise of its claims or rights in the event of failure by the other party to comply with the terms of the contract; because in such case enforcement takes place directly from the notarial deed, without the need to carry out a long-lasting court trial.

The clause on submission to enforcement in the notarial deed gives the Seller or the Lessor who has not received the payment of the price within the specified time limit the opportunity to apply to the court for an enforcement clause. Having a notarial deed with an enforcement clause, we can apply to the bailiff with a request to initiate enforcement against the debtor in order to recover our debts.

However, there are situations when the buyer or the Lessee has many creditors, or most of his property is located outside Poland, in these cases enforcement may unfortunately be difficult. However, despite some disadvantages, the described solution is a tool that is often used by sellers or landlords to mitigate potential negative economic effects resulting from the actions of unreliable Buyers or Tenants.

At Leach & Lang we encounter the practice of including provisions related to submission to enforcement quite often in contracts used in real estate transactions.

What is the difference between A, B and C class offices

There are different types of office building classification on the market. One of them and the most commonly used is the BOMA International classification, which differs three classes of office buildings: A, B, and C, where A stands for the highest standard, and C – the lowest.

Class A office buildings are the most expensive and prestigious buildings available on the market. They are characterized by a very high standard, interesting design and attention to detail in the finish; they also have the most modern technical infrastructure. Buildings of this class are dedicated to tenants who are looking for a representative seat for their company and appreciate a high standard and comfort of work. Class A office buildings are usually chosen by the largest domestic and international companies.

Class B office buildings are buildings with a slightly lower, but still good standard of finish, which are also very popular among tenants. Their standard and technical infrastructure are good, which allows them to operate smoothly, with lower rents per sq m. Very often, the choice of a B-class office building is taken by the owners of dynamically developing companies who do not yet want to incur additional costs related to renting space in higher-class office buildings, and at the same time want to take advantage a good standard, locations close to communication nodes and professional management.

Class C office buildings are dedicated to tenants for whom the representativeness of the seat is not an important measure for choosing an office. They have an average standard and less modern technical infrastructure. The advantage of this class of office buildings is the favorable rent level.

What is the “diplomatic clause” in lease contracts?

The “diplomatic clause” is a phrase used in the jargon of real estate agencies, companies dealing with the relocation of corporate employees, and companies operating in the field of real estate. It refers to a special clause in a lease contracts that provides the possibility of terminating such a contract before its expiry date.

The general rule when signing a fixed-term rental contract is that the parties should comply with the provisions of the contract and fulfill it. The contract may be terminated ahead of schedule by mutual agreement of the parties. Without this kind of agreement, a fixed-term lease may be terminated only on the terms specified in the contract itself, which the parties have provided for – these are the rules or circumstances described in the diplomatic clause.

It assumes that the Lessee may terminate the lease, e.g. if, as a result of the employer’s decision, the Lessee is to be relocated from the current city of residence and work to another place. It is assumed that the Lessee lives in a given city mainly for professional reasons; works, and therefore needs an apartment.

In a situation where the employer transfers the employee to another city, it will be unreasonable for him to rent and maintain the apartment. In such a case, the Lessee is asked to certify from the employer the fact of relocation for the Lessor. Currently, lease agreements concluded for a period of one year are often used, assuming that the Lessee may terminate the contract with one month’s notice, e.g. after six months of the term of the contract, in the event of relocation. Such a construction means that the owner of the premises has a guaranteed minimum term of the contract of seven months (six months + one month’s notice). In the last five months, the contract may be terminated, but only due to the relocation of the tenant. If the Lessee continues to work in the given location, the contract may not be terminated before the expiry of the term. The inclusion of a diplomatic clause in the content of the lease agreement ensures the Lessee’s security, enabling the tenant to terminate the lease agreement early if, for professional reasons, it is relocated to another place of residence.

When, as Leach & Lang, we prepare templates of lease agreements for clients, we use the provisions of “diplomatic clauses” that we have tested in practice.

How can a foreigner sign an ‘occasional rental’ agreement?

At Leach & Lang, we have met with such questions many times when it comes to renting flats or houses to people of different than Polish nationality. A foreign person may sign an occasional lease agreement, similar like a Polish citizen, but must meet one of the following conditions:

  1.  have own real estate in Poland. For example, a person who owns an apartment in Warsaw, moves to Krakow (due relocation in the company) and rents an apartment here. He can therefore choose his own apartment in the capital as an apartment for a possible move out.
  2.  have a trusted person (among family or friends) who agrees to indicate their property as a flat to move out (or relocate) if the lease has ended or has been terminated.

In practice, therefore, for a person who comes to Poland and doesn`t have any friends or family here, meeting these conditions may be very difficult; though a foreigner cannot indicate real estate outside the territory of the Republic of Poland.

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