Buying a flat from the city - step by step!
The purchase of any real estate requires a visit to a notary's office. This also applies to flats sold by local government units. From time to time, municipalities organize tenders for the purchase of affordable premises. So how to effectively buy such a flat? Check what it is about buying a flat from the city!
Buying a flat from the city - searching for an offer
Communes in Poland very often create offers for the sale of real estate owned by them. Therefore, it is worth following the current information in this regard - you can find it on the Internet (mainly on the website of a given commune) and in the local press.
Finding an interesting offer is the first step to purchasing a municipal flat. On the other hand, purchasing such real estate by tender is not the only option. The regulations in force allow you to bypass this requirement and take advantage of the so-called non-tender mode.
Communal real estate tender
The most common way to purchase premises from the municipality is through a tender, which may be oral or written.
In the first case, the price plays a decisive role - the person who offers the highest price for the premises sold wins. The tender takes place here on the basis of a judicial or bailiff auction.
The written tender is to select the most advantageous offer from the commune's point of view, which will not always be tantamount to obtaining the highest price. For example, in a written tender, the future owner may decide to win the area around the property being sold.
Municipal tenders are also divided into:
limited - only people who meet certain conditions can participate in them;
unlimited - are available to everyone.
After finding an interesting offer, you should examine it carefully and check whether we, as potential buyers, meet all the conditions of the announced tender. It is worth noting that the initial price of the premises will be included in the sale announcement - it is determined based on the current market value of the property. The better the condition and location of the premises for sale, the greater its value will be.
Tender security when buying a commune premises
The main condition for participation in the tender for the purchase of a flat from the city is the payment of a bid bond, the amount of which is each time specified in the commune's offer.
The method and account to which the bid security must be paid are always specified in the invitation to tender. It must be remembered that the money must be paid no later than 3 days before the tender date. The tender guarantee is a form of security for the commune and a guarantee of the participation of interested persons in the tender. If the tender is not won, the bid security will be returned in full (no later than 3 days after the end of the tender). In relation to the future buyer, it is counted towards the future price.
The rules of the oral tender
The oral tender looks like auctions carried out in auction houses - after checking the identity of the participants and the fact that they have paid the required deposit, interested parties are admitted to the room.
First, the protocol is read out, which contains all the information about the premises being sold (its condition, area, location, value and initial price).
All participants are then given voting numbers and bidding begins. The person who offers the highest price for the property for sale wins and will not be outbid after calling three times.
Rules of the written tender
Written tenders for the sale of municipal real estate are in the minority. They take place on completely different principles than oral auctions. Those interested in purchasing premises from the city submit their offers in sealed envelopes by the date specified in the tender announcement (this can be done in person at the commune office or by mail).
The bids are then examined by the tender committee - the one that is the most advantageous for the commune will be selected, i.e. the one that meets the conditions specified in the tender announcement the most.
Completion of the tender
The person who wins the tender (whether it is oral or written) receives official information from the tender committee - this is the basis for concluding a contract of sale before a notary public.
The commune is obliged to inform the person who won the tender about the place and time of signing the notarial deed - it takes place no later than within 21 days from the end of the tender.Start a free 30-day trial period with no strings attached!
It should be remembered that if the tender ended negatively, i.e. the most advantageous offer was not selected or the minimum price was not obtained from the tenderers, the commune will conduct it again. The second auction takes place within a period of not less than 2 weeks and not longer than 6 months from the closure of the first auction. The commune has the right to lower the price of the premises sold, but not more than by 50% of the price from the first tender. If the second tender also fails, the commune may organize further attempts to sell the property (in accordance with the above-mentioned dates).
Sale of premises in the form of a notarial deed
The sale of the purchased premises from the city requires the conclusion of a contract in the form of a notarial deed. If the person who won the tender does not show up at the appointed place and time to finalize the transaction, the commune has the right to withdraw from the contract and keep the paid bid bond in full.
The main difference between the purchase of real estate from the municipality and standard contracts for the sale of premises is the date of payment. Buying an apartment from the city requires the full amount to be paid in advance before signing the sales contract. In the case of purchasing real estate on the secondary or primary market, the price is regulated only after signing the notarial deed (it can also be divided into installments).
The payment of the price for the purchase of real estate from the city may be divided into installments, but the buyer's application is required, submitted to the commune before the date of signing the sale contract.
During a visit to a notary's office, the commune is represented by an appointed attorney. The buyer only needs to appear on the appointed date and have a valid identity document.
Purchase of premises from the city - costs
Concluding a contract for the sale of municipal real estate always involves notary costs. The final amount of the notary's remuneration depends on the value of the premises.
„The notary fee depends on the value of the subject of sale and amounts to:
- if the value of the item is up to PLN 3,000 - PLN 100;
- over PLN 3,000 to PLN 10,000 - PLN 100 + 3% of the surplus above PLN 3,000;
- above PLN 10,000 to PLN 30,000 - PLN 310 + 2% of the surplus above PLN 10,000;
- over PLN 30,000 to PLN 60,000 - PLN 710 + 1% of the surplus over PLN 30,000;
- over PLN 60,000 to PLN 1,000,000 - PLN 1,010 + 0.4% of the surplus over PLN 60,000;
- over PLN 1,000,000 to PLN 2,000,000 - PLN 4,770 + 0.2% of the surplus over PLN 1,000,000;
- over PLN 2,000,000 - PLN 6,770 + 0.25% of the surplus over PLN 2,000,000, but not more than PLN 10,000, and in the case of transactions between persons classified in tax group I within the meaning of the provisions of the Act on Inheritance Tax and donations not more than PLN 7,500.
In the case of selling a flat, the notary will charge half of the maximum fee”.
(§ 3 and 6 of the Ordinance of the Minister of Justice on the maximum rates of notary fees)
The good news, however, is that the purchase of premises from the city is not subject to tax on civil law transactions (in the case of standard sale of premises, it is 2% of the property value).
The costs of purchasing real estate from the city also include court fees (for entry in the land and mortgage register) and the costs of extracts from the notarial deed (one page of the excerpt is PLN 6 + VAT).
Purchase of premises from the city - the possibility of bypassing the tender
The purchase of communal real estate does not always require participation in the tender. The regulations allow for the circumvention of this condition.
The buyers of the premises in a non-tender procedure may be the previous owners of the property or their heirs. This possibility also arises in the case of:
perpetual usufruct users purchasing real estate;
tenants of municipal housing premises, if the lease was concluded for an indefinite period.
Regardless of the form of purchase of the premises from the city, the buyer must take into account notary costs and the need to visit the office.