Real Estate 2025

POLAND Law and Practice Contributed by: Michał Wielhorski, Mateusz Prokopiuk, Małgorzata Wąsowska and Klaudia Michalec, act legal Poland

6.21 Forced Eviction The lessee may be forced to vacate the prem - ises in the event of early termination of the lease – for example, as a result of termination by the landlord. Forcing the tenant to vacate the leased premises (if the tenant does not voluntar - ily vacate) requires initiation of enforcement pro - ceedings and eviction by an enforcement offic - er. Eviction by an enforcement officer requires either: • a final court judgment; or • a title to enforce a notarial instrument in which the tenant has undertaken to voluntarily surrender the leased property to the landlord upon expiry of the lease agreement. Such notarial deeds are in practice a standard security measure expected by landlords and financing banks. 6.22 Termination by a Third Party As regards the termination of a lease by a third party, such a situation is possible in the event of the tenant’s bankruptcy. In such case, termina - tion notice is sent by a trustee in bankruptcy. 6.23 Remedies/Damages for Breach Under Polish law, the landlord may claim from the lessee: • outstanding payments (rent, other fees); and • compensation for breach of agreement and its early termination (eg, lost profits in the form of lost rental income). Polish law does not provide for any specific lim - its on such compensation. In addition, clauses imposing contractual penal - ties on tenants for breach of specific obligations are standard in lease agreements.

Lease agreements typically include measures aimed to secure the tenant’s payment obliga - tions – for example, a security deposit or a letter of guarantee issued by a bank or insur - ance agency, or a notarial instrument including tenant’s statement of voluntary submission to enforcement with regard to payments. 7. Construction 7.1 Common Structures Used to Price Construction Projects Under Polish law, fixed-price agreements and agreements based on the cost of project imple - mentation are both allowed. However, in prac - tice, fixed-price agreements are the preferred option. A mixture of the above structures may be encountered in practice. Complexity of the con - tract may vary depending on the scope of the project. 7.2 Assigning Responsibility for the Design and Construction of a Project In Polish market practice, liability for defects in design documentation is usually borne by the designer (architect), with whom a separate agreement has been concluded for preparation of project design documentation. The designer is liable to the investor under a statutory war- ranty for defects or under a contractual quality warranty granted in the agreement for the design documentation concerned. However, responsibility for the actual execu - tion of the project rests with the contractor with whom the investor concludes a contract for construction works. In practice, the role of the contractor (or general contractor) is limited to

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