POLAND Law and Practice Contributed by: Michał Wielhorski, Mateusz Prokopiuk, Małgorzata Wąsowska and Klaudia Michalec, act legal Poland
6.13 Restrictions on the Use of Real Estate In a lease agreement, the landlord may specify the permitted uses of the premises while indicat - ing, for example, the type of activity that may be carried out therein or request compliance with the general rules for permitted use of the build - ing. In addition to the contractual provisions, the tenant’s use of the property and the premises is also subject to restrictions under commonly applicable regulations, such as construction law, fire safety regulations and environmental protec - tion. 6.14 Tenant’s Ability to Alter and Improve Real Estate Tenants may alter or improve the premises sub - ject to lease but this right – albeit commonly used in commercial lease practice – is subject to strict regulations both under the law and under the terms of the lease agreement concerned. As regards commercial leases, it is common practice for premises to be delivered to the ten - ant as shell and core – ie, requiring fit-out works or as space that requires adjustment after being used by another tenant. In such a situation, the parties to a commercial lease very often make an arrangement whereby the tenant undertakes to make improvements to the leased premises in order to adjust the space to their needs and the profile of business conducted. When undertaking construction or fit-out work, the tenant must exercise due diligence and pro - ceed in accordance with applicable laws, build - ing rules and regulations, and approved design documentation. It is standard practice in com - mercial leases to specify a precise time limit for a completion of such works, as well as to impose an obligation on the tenant to have adequate third-party liability insurance and specialised
CAR/EAR type policies (covering construction and assembly risks). However, the reverse model is also applied in market practice, whereby the landlord under - takes to carry out the fit-out and adjustment works before delivery of the premises to the tenant. 6.15 Specific Regulations In the Polish legal system, the lease of residen - tial premises is governed by detailed regulations. Besides the Civil Code, the rules governing such leases are also included in specific acts (such as the Act on the Protection of Tenants’ Rights). Commercial leases – regardless of whether they concern office space, warehouse space, or retail space in a shopping mall – are governed by the Civil Code and the differences between these leases result from the content of the lease agree - ments and prevailing market standards. 6.16 Effect of the Tenant’s Insolvency Under bankruptcy law, the declaration of a ten - ant’s bankruptcy does not automatically lead to termination of the lease but gives special rights to both the trustee in bankruptcy and the land - lord. Furthermore, under Polish law, it is not pos - sible to grant the landlord the right to terminate the lease agreement in the event of a tenant’s bankruptcy (such a clause would be absolutely invalid under Polish law). The trustee in bankruptcy, who manages the bankrupt tenant’s assets, may decide to termi - nate the lease at any time during the proceed - ings – even if the lease is for a fixed term. 6.17 Right to Occupy After Termination or Expiry of a Lease In the event of the expiry or termination of a commercial lease, the tenant has no right to con -
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