Characteristics of legal titles to property
The most common legal titles to property are: ownership, perpetual usufruct, use, lease and hire.
Property right (Art. 140 et seq of the Civil Code) gives the investor the widest range of opportunities. An owner can individually use and manage the property within the limits market by law, rules of social behaviour and socio-economic purpose of the property. The price which was determined through negotiations or in a tender procedure, and appears in the sales contract is the final price. The sales contract must be concluded by a notarial deed. Information on the transfer of ownership right to the purchaser is included in the Land and Mortgage Register. In certain situations, the property owner may be required to pay a betterment levy in accordance with Art. 143 and following of the Act of 21 August 1997 on Real Property Management (Dz. U. of 2018, item 121). Determination and the amount of betterment levy depends on the growth of value of the property, caused by the construction of technical infrastructure facilities such as roads, pipes, sewage, water supply or heating systems. The fee is determined by the Mayor of Bydgoszcz.
The right of perpetual usufruct (Art. 232 et seq of the Civil Code) is an intermediate title to property which can be placed between ownership and limited property rights. Perpetual usufruct allows to use the land within the limits set by law, the rules of social coexistence and an agreement to grant the investor the right of perpetual usufruct to land owned by the State Treasury or Gmina. The right of perpetual usufruct may be granted to individuals or legal persons in the case of land owned by the State Treasury and located within the administrative boundaries of cities, the State Treasury land situated outside these boundaries, but incorporated into the Local Spatial Development Scheme and which realise economic tasks of the city, as well as land owned by Gminas or their associations. In principle, perpetual usufruct is granted for 99 years but never for a period shorter than 40 years. An agreement in the form of a notarial deed is the basis for including an appropriate entry in the Land and Mortgage Register. A perpetual usufructor is obliged to pay an annual fee. Fees are fixed-rate interests on the price of the property appraiser (Art. 72 of the Act of 21 August 1997 on the Real Property Management).
Use is one of the limited property rights. According to Art. 252 of the Civil Code, use grants its holder a right to use and collect income from the property. The user has the right to use the land and gain benefits from that use. Use is an inalienable right and cannot be transferred to another person. A user can, however, use the land personally or through a third party. Use may be established for a specified period or indefinitely, but it always ends if the property is not used for more than 10 years. The user is obliged to use the land in accordance with requirements of proper management. Use is agreed between the owner of the land (e.g. Gmina or the State Treasury) and the future user. Use may be granted for a fee or free of charge.
Lease is an agreement in which the lessor agrees to give land to a legal person or an individual to use and enjoy it for a fixed period or indefinitely. The lessee must pay rent to the lessor (Art. 693 of the Civil Code). A lease for more than 30 years is deemed to continue as having been concluded for an indefinite time after the date defined in the contract. The lessee shall exercise their right in accordance with the requirements of best management practices and cannot change the designated use of the lease object without the consent of the lessor. Without the consent of the lessor, the lessee may not lease the property to a third party to use it free of charge or sublease the property. Rent for the lease of land owned by the City of Bydgoszcz is determined by the Mayor of Bydgoszcz in the form of an ordinance.
Through a hire agreement, the lessor allows the lessee to use the property for a specified or indefinite period of time. The tenant is obliged to pay rent to the landlord (Art. 659 § 1 of the Civil Code). In the absence of a written contract is such a case, the agreement is deemed to be concluded for an indefinite time. During the term of the agreement, the tenant is required to use the property in the manner described in the contract. In the absence of such a description, the tenant should use the property in a way suited to the characteristics and planned use of the property.