Before proceeding to the construction work, the investor must make efforts to acquire the land on which they intent to erect a building and obtain a legal title to the land. The process of obtaining the right of ownership or lease of the property depends on the owner. In the case of a property owned by the State Treasury or Gmina, the process is strictly formal.

 

A/ Acquisition of property

 

Land may be owned by:

– a natural or legal person
– Gmina or the State Treasury

 

In the case of a property owned by individuals or legal persons, the acquisition will be determined by negotiations, during which the parties agree on essential terms of the transaction (in particular the price).

 

In the case of land owned by Gmina, in accordance with the Act of 21 August 1997 on the Real Property Management (Dz. U. of 2018, item 121) the city authorities are required to take appropriate steps. Bydgoszcz City Council, in accordance with the competences specified in Art. 18 (par. 2, point 9 letter a) of the Act of 8 March 1990 on the Local Self-government (Dz. U. of 2017, item 1875) should adopt a resolution on sale, mortgaging, lease or hire, if it is a lease or hire contract for a period longer than 3 years.

 

The basic principles of acquiring and disposing of property, in relation to certain types of property, are defined by the Resolution of the City Council No. LIX/1147/2005 of 30 November 2005 (Chapter 3) amended by Resolutions No. XLIII/625/09 of 25 February 2009.; LXVIII/1060/10 of 30 June 2010.; XII/150/11 of 25 May 2011.

 

It is worth to note a few conditions mentioned in the resolution, namely the fact that in the case of selling a property included in the Monument Register of the Kuyavian-Pomeranian Voivodeship, the City of Bydgoszcz has the right to repurchase the property within 5 years (§6 point 4.1) and oblige the purchaser to carry out essential maintenance within a specified period if the condition of the property requires it (§6 point 4.2).

Furthermore, it is possible to pay for the property in instalments, for a maximum period of 10 years and only in the case of a property sold without a tender procedure.

 

According to §9 point 4 of the Resolution, in the event of granting the right of perpetual usufruct to the property, the percentage rate of the first payment equals to 25% of the price of the land.

 

Costs included in §10 of the Resolution are incurred by the purchaser. These costs include:
1) preparing a valuation by a property appraiser
2) a subdivision survey
3) preparation of a notarial deed and the Land and Mortgage Register entry

 

Moreover, it is worth mentioning that a property owned by Gmina may be transferred free of charge or against payment with no need for announcing a tender procedure both to a private individual as well as a limited company established by a private partner and Gmina in accordance with the provisions of the Act of 5 February 2009 on Public-Private Partnership (Dz. U. of 2017, item 1834).

 

Information on selling, granting a right of perpetual usufruct, lease or rent of a property owned by Gmina in accordance with Art. 35 of the Act on the Real Property Management, shall be made public by placing it on the notice board in the Bydgoszcz City Hall for the period of 21 days, as well as in the media. The information should include such data as the total area, plot number, the Land and Mortgage Register number, marking of the plot, description and the purpose of plot according to the Local Spatial Development Scheme, the offer price of the land and building(s).

 

Establishing the property price:

 

The property price is the value determined by a property appraiser expressed in monetary terms. The offer price in the first tender is determined in an amount not less than the value of the property, and the amount less than the value of the property but not lower than 50% of its value in the second tender. The offer price is the starting price for determining the selling price.

 

Procedure of selling or establishing perpetual usufruct to communal land:

 

The Act of 21 August 1997 on the Real Property Management established a principle of property trade transparency in the case of property owned by Gmina, which is crucial for credibility and certainty of trade.

According to Art. 27 of the Act, sale of a property or granting the right of perpetual usufruct requires a separate agreement in a form of a notarial deed.

Sale of property or establishment of perpetual usufruct is proceeded by a tender procedure or is realised without a tender. It is a rule to follow a tender procedure which allows to choose a contractor who proposed the best offer.

Terms of the sale by tender are publically announced and include information on time, place and conditions of the tender. A tender procedure may take the form of:
– oral open tender
– oral limited tender
– written open tender
– written limited tender

 

Oral open tender – aims to achieve the highest price. It is valid regardless of the number of participants, if at least one of them offers a price higher than the offer price. The next highest price offer may not be less than 1% of the offer price. The chairman of the Tender Committee announces the last highest bid three times and the tender closes. Then, the chairman announces the investor whose offer was regarded as the best.

 

Oral limited tender – is designed to obtain the highest price and is organised when the tender conditions can be met by a limited number of bidders. The Tender Committee verifies whether the bidders meet the specified conditions and authorises investors to participate in the tender procedure, publishing a list of names no later than 1 day prior to the scheduled date of the tender. The tender procedure may take place even if only one bidder has been qualified.

 

Written limited tender – its aim is to choose the best offer. It is realised according to regulations of an open tender if the tender conditions can be met only by a limited number of bidders. The Tender Committee verifies whether the bidders meet the specified conditions and authorises investors to participate in the tender procedure, publishing a list of their names no later than 1 day prior to the scheduled date of the tender. The tender procedure may take place even if only one bidder has been qualified.

 

Written open tender – is aimed at choosing the best offer. It can be organised even if only one offer which meets the specified conditions has been received. The tender procedure accepts both individuals and legal persons if they deposit a bid security. In the case of a written tender, the investor must submit their offer in writing in a sealed envelope at least 3 days prior to the date of the tender.

 

The offer should include:
– the investor’s name and location,
– the date of preparing the offer,
– a statement that the bidder is familiar with the tender conditions,
– price offered and method of payment
– method of complying with the additional conditions of the tender
– confirmation of bid security deposit.

 

The tender procedure is realised by the Tender Committee appointed by the Mayor of Bydgoszcz.

 

Tender procedure consists of two parts:
– Overt – which takes place in the presence of the bidders. It involves a confirmation of the correct procedure of announcing the tender, determining the number of bids, confirming bid security deposits, opening the bids and qualifying them to the covert part of the tender procedure, informing the bidders about the date of the second part of the procedure and the expected date of closing the tender.
– Covert – in which the Tender Committee examines and chooses the best offer.

 

Bid security:

 

The amount of deposit may not be less than 5% and not more than 20% of the offer price. The amount of deposit is determined by the Mayor of Bydgoszcz. The bid security is refunded after the cancellation or closure of the tender procedure, but not later than 3 days from the date of cancellation or closure of the tender. The deposit paid in cash by the investor who wins the tender is credited towards the purchase price of the property or the first perpetual usufruct fee in the case of land.

 

The result of the tender procedure is recorded in the minutes, which is the basis for concluding the agreement in the form of a notarial deed. The Mayor of Bydgoszcz, as the organiser of the tender procedure, notifies the purchaser about the date and place of signing the agreement or granting the right of perpetual usufruct, within 21 days from the date of announcing the result of the tender procedure.

 

If the purchaser fails to appear in the place and date specified in the notice without a compelling reason, the Mayor of Bydgoszcz may withdraw from the contract and the deposit paid will not be refunded.

 

For more information contact:
Bydgoszcz City Hall
Department of Property and Geodesy
9-15 Grudziądzka Street (room. 324)
85-130 Bydgoszcz
tel.(0048-52) 58 58 243, 58 58 339

 

B/ Lease of communal land

 

Clarification:

 

The rule is that communal land in the City of Bydgoszcz is leased for a fixed period of time no longer than three years. Property held for lease shall be placed on public lists in Bydgoszcz City Hall for a period of 21 days. When more than one application for the lease is submitted, an oral tender for the amount of rent is announced.

 

The procedure:

 

The investor submits an application at a time when a list of property for lease is publically posted, providing the number of the list and the number of property. Those interested in leasing communal land which is not included in the list may submit a request specifying the ground, its area, purpose and duration of lease, attaching a current cadastral map of the area and a copy of an entry in Land Register. The City will evaluate the possible manner of distribution, ownership rights and development conditions of the area indicated by the investor. If the land is intended for lease, it will be placed on a property list and made available to the public.

 

For more information contact:
Bydgoszcz City Hall
Department of Property and Geodesy
9-15 Grudziądzka Street (room. 324)
85-130 Bydgoszcz tel.(0048-52) 58 58 243, 58 58 339

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