Market overview
Poland has been at the very heart of European history for a thousand years and has much to offer visitors and buyers alike, with architectural gems like Krakow and Gdansk vying with the bustle of Warsaw and the peaceful charm of the Carpathians. History fans will find their days full of sights to see and destinations to go. Contrasting modern cityscapes with vast areas of natural beauty, there is a home to suit each individual.
For investors, Poland’s strong economy has seen its profile rise over recent years. A strong housing market and steady demand for property makes major cities, such as Warsaw and Krakow, popular for buy-to-let investors.
Average selling prices
£67,606
£97,626
£52,743
£114,222
£138,345
The Selling Process
Marketing your property
Before you do anything, check out the market. Unless you’re forced to sell, steer clear of slumps when prices are depressed and perhaps consider letting out long-term until the market recovers as an alternative.
Legal Representation
It is mandatory to use a notary. A Polish notary is a highly qualified lawyer who acts as a publicly appointed official and is neutral, acting for neither the interests of the purchaser nor the vendor. The notary’s main role is to ensure all taxes are paid and to register the property sale with the Polish land registry. For foreign vendors it is important that the lawyer you instruct to represent your interests should be bilingual as well as having knowledge of the legal system in Poland and your own country. It is rare for notaries to be qualified in this respect meaning that British vendors tend to use dually qualified British solicitors.
Preliminary Agreement
Once both vendor and purchaser are happy with the terms of the sale, a preliminary agreement is prepared by the notary and signed by both parties. The preliminary agreement sets out the actions which must be completed before a final sales contract can be entered into. These conditions will include such things as the buyer obtaining suitable finance and the seller making certain that the title to the property is free and clear of encumbrances and claims by third parties. On signing, the buyer pays a deposit usually of 10 -20% of the purchase price, with the balance due in stage payments or on completion.
Completion
At the end of this period, the purchaser pays the balance of the purchase price to the vendor. The final contract is signed in front of the notary by both parties and ownership passes to the purchaser.
Land registry
After the balance has been transferred to the vendor and all fees and taxes have been paid, the deed of sale is registered at the Land Registry by the notary.
Selling Costs Checklist
Once you have met these costs, you have paid to sell your home
VAT – land sales are subject to 23% VAT. CGT – If the sale of a property is within 5 years of it being purchased, the Capital Gains Tax stands at 19%. Commission – The vendor will normally pay between 1.5% to 3% depending on the company and the value of the property that you are planning to sell. The agent’s fee is usually included in the advertised purchase price.
Photo:AJC1, PetrOlly Yeliseev
