Formalities after buying real estate

Buying a flat is a major decision and a special moment in life. This special event is associated with a fair amount of excitement and joy, but before it is possible to feel “at home”, there are a few responsibilities to keep in mind. It is worth learning about the formalities after purchasing a property and the additional costs associated with buying a flat.

What is the cost of a notary after buying a property?

A visit to a notary is necessary to carry out the transfer of the right to the premises when purchasing a property. What expenses are involved in preparing a notarial deed? Firstly, you have to pay the so-called notary fee, i.e. the notary’s remuneration, and 23% VAT on this service.

Check the calculator to see how much it will cost you.

The maximum amount of notarial fees is set out in the regulation of the Minister of Justice of 28 June 2004 on maximum rates of notarial fees (Dz.U. 2004 No. 148, item 1564).

How much is the tax on civil law transactions?

When buying a flat from the secondary market, the purchaser generally has to pay a civil law transaction tax (PCC) on the purchase of the property. This benefit is calculated by the notary and amounts to 2% of the value that was paid for the property. The notary also reports the fact of the purchase of the flat to the Tax Office and remits the payment for this tax immediately. It is worth noting here that the burden of paying the 2% tax on civil law transactions rests solely with the buyer.

Check in the calculator below how much the tax will be for the property you have purchased.

Acceptance of the flat

Once the funds have been credited to the seller’s account (which can take up to several working days), it is time to hand over the flat. It should be brought to the condition agreed upon by the parties at the time of contract conclusion. The acceptance of the flat should be concluded by drawing up a handover protocol.

As a real estate agency Homely Estates, we guarantee the security of this activity and prepare a document that includes a record of the current state of the meters and any comments on the condition of the flat. The signed protocol signifies the moment to hand over the keys to the flat, basement, garage, etc.

Form IN-1

Anyone who has acquired real estate is obliged to notify the relevant tax authority of this fact. This notification is made using a special official form (IN-1). A model form can be found on the website of the municipality (or city) competent for the location of the acquired real estate. Each office has its own specimen of such information. The form must be completed and submitted within 14 days from the date of acquisition of the real estate. Failure to notify correctly will result in a fine.

Zgłoszenia nabycia nieruchomości można dokonać na różne sposoby:

in person at the municipal office,
by post in the form of a registered letter,
by e-mail.

On the basis of the submitted information on the purchase of real estate, the competent tax authority determines the amount of real estate tax. It shall then inform the taxpayer by sending the relevant document by post in the form of a registered letter with acknowledgement of receipt. The decision should contain information on the amount of real estate tax and the deadline by which this tax must be paid.

In the case of cooperative ownership and tenancy rights, it is the cooperative that pays the property tax. This tax is transferred to the tenants by the cooperative in the form of administrative rent. In practice, this means that buyers are not obliged to pay the real estate tax themselves and to report the acquisition of the right to the premises.

Utility providers and housing associations and cooperatives

If the subject of the sale transaction was a cooperative ownership right, an obligation arises to inform the housing cooperative about the transfer of the right to the premises to another person. A visit to the management board of the cooperative will be necessary for this purpose. A copy of the notarial deed is sent to the cooperative by the notary, but it will be necessary to recalculate the amount of the monthly rent due. Similarly, in the case of ownership rights, a visit to the management of the housing association will be necessary.

At the same time, the takeover of the flat involves sorting out the formalities for the assignment of utility contracts (electricity or gas) to the new owner. This can be done by means of a transfer and acceptance protocol prepared in advance, which will allow the utility supplier to settle the seller’s obligations.

In addition, it is a good idea to inform your bank, workplace, university and other institutions that will require you to update your mailing address of your new residence.

Summary

The formalities involved in acquiring a property can make your head spin. We leave this short guide in your hands so that you do not miss any important element of the property acquisition process. When preparing for a transaction, it is advisable to plan all the steps and use reliable materials. As the real estate agency Homely Estates, we make sure that the entire transaction is secure so that the paperwork is completed as quickly as possible and you can create a real “home” in your new location.

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