How to safely buy real estate in Poland remotely in a pandemic?

Current situation with buying real estate in Poland

Currently, the situation for foreign home buyers in Poland has become much more complicated. Restrictive measures introduced in connection with the coronavirus pandemic have led to the temporary suspension of border operations in a number of European countries. Galina Kharlamova, a leading real estate expert from East West Reals, based in Warsaw, answers the main questions concerning buying real estate in Poland.

Key aspects of buying real estate remotely

One of the most important aspects of buying a home remotely is the correct execution of all the necessary documents. This applies not only to contracts, but also to all procedures related to financial transactions. In order to buy an apartment in Warsaw, you need to collect certain documents, including:

• I.D;
• financial certificates proving the legality of your sources of funds.

Procedure for making payments

A frequently asked question concerns the procedure for payments from outside the country. It is necessary to carefully understand how to correctly and safely transfer money to a real estate account. The main points to be taken into account are:

• Where should the funds be directed?
• Make sure your money goes into the correct account belonging to a trustworthy notary or real estatedeveloper.
• It is advisable to find out all the necessary banking information in advance and verify its authenticity.

Power of Attorney Topic

The topic of power of attorney also comes up frequently in discussions. Many potential buyers wonder whether it is possible to transfer the rights to their real estate to another person. It is important to remember that the person to whom you entrusted the purchase can become the legal owner of the home if all the paperwork is done correctly.

Nevertheless, the concern that the chosen apartment may not meet your expectations is well founded. It is important to pay attention to a wide range of available information, including videos and photos of the property, to ensure that the image matches reality.

Document verification

The verification and authenticity of all documents play an important role in the security of the transaction. Make sure you have the opportunity:

• Get a preview of the sales contract;
• Familiarize yourself with its terms and conditions;
• Understand the language in which the document will be drafted;
• Ensure that you will be able to sell your property remotely in the future.

How to verify ownership

Regarding the question of how to verify one's ownership of housing, it is important to understand whether there are electronic registries that reflect this information. Everyone should be able to check the ownership of the property they are interested in.

Choosing a neighborhood to live in

Some people prefer to wait for the borders to open so that they can travel to Poland on their own to make a deal. However, if you are not familiar with the region, how can you choose the most suitable and promising area to live in? In addition, there is the possibility of finding yourself in a neighborhood with unfavorable infrastructure, for example, close to factories or busy highways.

Conclusion

All these questions emphasize how important it is to properly prepare for the remote purchase of real estate in Poland. Careful study of all aspects and nuances in this process will help to avoid unpleasant situations and risky investments.

Questions when buying real estate

The question of whether it is required to provide proof of the legality of the source of financing often arises among potential buyers of real estate. How to properly execute a power of attorney for buying real estate in Poland and which notary services are better to choose? Where can I find an example of such a document? In what language should the power of attorney be drawn up? Will the original signed contract of sale be issued? What to do if the construction company does not fulfill its obligations? What should I do if hidden defects are discovered after the construction is completed? Where are the keys to your new apartment kept until you move in? How do you make sure that someone is not occupying your apartment while you are away? How can you get the keys from the developer if you are unable to travel to the site?

Useful resources for remote shopping

There are useful resources that cover the process of buying real estate remotely. The procedure of purchasing a home in Warsaw without physical presence includes several consecutive steps.

Defining search criteria

In the first step, it is important to understand the client's request. The criteria for the property search should be clearly defined, including:

• Purpose of purchase;
• Location;
• Affordable Budget;
• Proximity to educational institutions and developed infrastructure;
• Desired floor level;
• The choice between new buildings and the secondary market.

Every detail matters.

Searching and selecting an object

After defining the criteria, you need to start searching and selecting a property. In this process, you can use video calls via popular messengers such as Skype, Viber or WhatsApp. Video reviews of the property itself and the surrounding infrastructure are also available.

It is easy to send all the necessary documents regarding the property by e-mail. Thanks to videoconferences and telephone conversations with the seller or developer, it is possible to gather all the necessary information to make a purchase decision in just a few days.

Reservation phase

When the object has been selected, the reservation stage comes. It consists of signing a reserve agreement, which can also be drawn up remotely. To do this, it is sufficient to exchange scans of the signed agreement and then send the original by post.The reserve payment can be made to the developer's account from anywhere in the world.

Signing a notarized contract

The next important step is to sign the notarized contract. This will require a notarized power of attorney, which can be translated locally using a certified translator. The draft power of attorney is created by the notary who will be in charge of finalizing the transaction.

This approach ensures maximum simplicity and transparency in the process of buying real estate in Poland, which makes your transaction comfortable and safe.It is important that all steps are clearly laid out to prevent potential problems in the future.Our mission is to help you realize your real estate dreams without the added hassle and worry.

Power of attorney and its details

The trust agreement must necessarily reflect all the nuances associated with the rights to be transferred. It is necessary to specify the specific real estate object that you intend to purchase, establish the value, in whose name the object will be registered, and also determine the powers for the subsequent registration of rights to the new owner.

Documents for buying real estate in Warsaw

What documents do I need to collect to buyreal estate in Warsaw? In order to complete the purchase of an apartment, an individual must have a valid passport. If you are officially married, you will need to attach the passport of your spouse.

In case you are planning to buy:

• land plot,
• real estate on it,
• commercial facility,

- you will need to obtain approval from the Polish Ministry of the Interior. However, if your goal is to buy a first floor apartment with an adjoining area, it will not be necessary to obtain approval from the Ministry of the Interior.

Payments and money transfers from abroad

How to make payments and money transfers from abroad? Ukrainian citizens are allowed to make international transfers up to100,000 US dollars.from one buyer per year, considering such investments outside their home country. The purchase of real estate in Poland is classified as an investment activity; therefore, couples can start the process of purchasing real estate with an amount of$200,000..

As for citizens of Belarus, some local banks allow making transfers from current accounts of Belarusian banks to accounts in Poland. In this case, it will be necessary to provide the original notarized document and its translation, which will be the basis for making the payment. Russian citizens can freely transfer money without any restrictions from local bank accounts to accounts in Poland by providing the original notarial deed and its translation.

To whom is payment made for the purchase of real estate?

In the primary market, purchases are made through trust accounts of developers. When a contract is signed with the developer, the amount for the apartment is divided into 8-9 installments. The buyer does not send money directly to the developer:

The bank managing the trust settlement account verifies the construction phases:

• foundation readiness,
• underground parking level,
• floor readiness.

Only then transfers the funds to the developer.

Process safety

How safe is this procedure? Of course, the process of buying real estate in Poland is absolutely safe! Notaries, lawyers, judges and prosecutors in the country occupy high positions of public trust according to the current legislation. Thus, real estate transactions are conducted in compliance with all necessary legal formalities, which guarantees protection for both buyers and sellers.

Such procedures are organized in such a way as to minimize the risks of loss of funds, which creates a reliable mechanism for all participants in transactions.

If the transaction does not go through, the notary must return the full amount that the buyer transferred (100%).

Security of real estate transactions by power of attorney

How safe are real estate transactions in Poland carried out on the basis of a power of attorney? It is quite safe to entrust the process of purchasing real estate to your representative. You, as the principal, authorize your attorney to purchase real estate on your behalf, specifying all important details such as the exact address, the name of the residential complex, the area and the price of the property. A notary in Poland is not authorized to certify documents if they go beyond the scope of the authority granted.

Remote purchase option

Can a trusted person become the owner of an apartment in a remote purchase by power of attorney? This is not possible and is considered a criminal offense under Polish law.

Real estate eligibility verification

I am worried that the apartment I am buying may not meet my expectations. How can I make sure that the photos and videos provided really correspond to the property I am about to purchase?

How do I make sure that I own a property in Poland?

Is it possible to carry out a real estate inspection through electronic registers? Every land or residential property in this country has a unique cadastral number. To find out who is the actual owner of a particular property, you need to visit the official website of the cadastral registry. On this platform, you will be able to independently find information on how the change of ownership of the property you are interested in took place.

Risks of buying real estate remotely

Why take the risk of buying remotely when you can wait for the borders to open and complete the transaction on site in person? Among our clients, there are often those who choose to purchase real estate remotely. This may be due to the need to relocate or the desire to invest to effectively save and grow their money.

Realizing the possible risks, owners consider remote purchase as a reasonable step. Before the pandemic and the closure of borders, our agency's clients had already successfully purchased housing remotely, realizing the advantages it brings in the current situation. The constant growth of the cost per square meter also encourages them to make a decision to buy in this period.

Choosing a neighborhood for purchasing real estate

Not very familiar with the city? How to determine which neighborhood or location is suitable for buying a property? What to do if there is a factory, a noisy road or an inconvenient transportation interchange nearby?

• When you select a property, you are guaranteed access to full details of its location, including a detailed address.
• There are maps online to help you better understand the terrain and terrain features.
• Your real estate agent is always ready to give you a virtual tour of the property using Skype, WhatsApp and other messengers.

Development plans and legality of funds

Also available in Poland are building plans for the next 2-5 years, which can be studied by everyone, which indicate upcoming construction projects in your neighborhood.

Do I need to confirm the legality of the source of funds for the transaction?Not obligatory at all. According to the current Polish law, when transferring money to the seller or to a notary deposit from your bank account, the buyer does not need to provide documents confirming the legality of the funds if the money comes from abroad.

Choosing a notary to execute a power of attorney

How to choose a notary to execute a power of attorney to purchase real estate in Poland? Where can I find a sample of such a power of attorney? In what language should it be executed?

Usually, buyers receive an example of a power of attorney and its text directly from the notary who will finalize the transaction. It should be remembered that different notaries may have their own requirements and peculiarities of document execution, so it is worth clarifying all the details of this process in advance.

Power of attorney for real estate transactions

The document that is drawn up for real estate transactions must clearly state the key conditions: what property will be purchased, its price, details of the buyer, and the possibility of transferring rights to the new owner. Such a document is created in the language of the country where the transaction takes place and then sent to Poland. In Poland, the power of attorney is translated into Polish by professional linguists with the appropriate accreditation.

Original purchase and sale agreement

As for the original signed contract of sale, it is always handed over to the buyer upon completion of the transaction. If the construction company turns out to be unreliable and fails to fulfill its obligations, the rights of the parties in such cases are regulated by special Polish legislation. This refers to the law protecting the rights of purchasers of residential premises and individually built houses, adopted in 2011, September 16 (Dz.U. nr. 232, poz. 1377) and updated on July 7, 2017 (Dz.U. z 2017 r. poz. 1468).

Financial transactions and protection of rights

According to the above-mentioned law, all financial transactions between the buyer and the developer must be carried out in strict compliance with the established norms. This implies that the interaction with the developer is carried out through a specially opened bank account to which funds are not received directly.The full cost of housing is divided into 8-10 partsThis allows the buyer to take advantage of an interest-free installment plan for the entire construction period, which usually lasts about two years.

Financing procedure

At each stage of construction, funds will be transferred to a special trust bank account. The bank verifies the fulfillment of conditions and completion of the construction phase before making the payment to the developer.

Developer's liability

In addition, this law obliges the developer to have civil liability insurance and describes mechanisms for buying out or financing unfinished construction projects. In practice, developers in Poland most often finance their projects with their own resources or loans, which are allocated in stages. This significantly reduces the risks of construction in progress. We strongly advise you to contact only reliable construction companies with a positive reputation in this field.

Real estate guarantees

If hidden defects are discovered during the operation of the purchased real estate, the buyer can count on a warranty for a period of five years. The customer has the full right to demand that the developer eliminate all defects discovered during operation. This entire process is regulated by the same law on the protection of buyers' rights, which gives citizens confidence in their safety when making real estate transactions.

Conclusion

The conclusion of the article summarizes an important and relevant topic concerning the purchase of real estate in Poland under the restrictions caused by the coronavirus pandemic. The choice of housing abroad is becoming more and more common, and the cities of Europe, in particular Warsaw, are delighted with the variety of offers. Nevertheless, there are not only conveniences associated with remote purchase, but also a number of issues of concern for potential investors.

I understand that many readers may feel uncertain about issues related to the safety of transactions and the reliability of real estate information. That is why I have tried to cover every step of the remote purchase process in detail, starting with the selection of the property and ending with the process of signing the contract. Each stage requires attention and a clear understanding of how it goes in order to minimize risks and guarantee a safe transaction.

Answers to common questions

Also, I've tried to answer the most common questions and dispel myths about remote buying. For example, there are concerns that:

• the apartment may not live up to expectations;
• it's not safe to give power of attorney for real estate transactions.

I am confident that with careful preparation, the use of modern technology and professional assistance, all obstacles can be successfully overcome.

New lifestyle

In conclusion, it is important to note that buying real estate is not just a financial investment, but a step towards a new way of life. It opens up new opportunities for both personal living and rental income. Despite the limitations, I encourage you not to be afraid to take steps towards your dream and consider the options that the market provides.

Process availability

Ultimately, thanks to online technology and professional services, the process of buying real estate in Poland has become accessible even with limited mobility. I hope that this article will serve as a reliable guide and source of information for you in this fascinating endeavor.Good luck finding your perfect home!