What are the main challenges in the property restitution process in Poland?

Poland does not have a comprehensive, single law regulating the restitution of property nationalized during the communist era. Instead, the issue is governed by a complex patchwork of various laws from different periods, administrative practices, and court decisions. Attempts to pass a unified restitution law have been made but have so far failed, with the closest effort being a draft law vetoed in 2001.
 
Restitution cases are complex due to following factors:
 

1. Poland lacks a single, comprehensive law addressing restitution of property nationalized by the communist government after World War II. Instead, each case is assessed individually based on various laws from different periods, making the legal environment fragmented and unclear.
2. The process is slowed by difficulties in proving ownership, confirming inheritance, and obtaining necessary documentation. Courts often take a rigid approach to foreign or incomplete documents, complicating claims especially for heirs living abroad.
3. There have been significant irregularities and corruption scandals, notably the “reprivatization scandal” in Warsaw, where properties were fraudulently returned to false heirs or proxies. This has cast doubt on many restitution proceedings and led to freezing or reversing some cases.
4. The restitution process is politically charged and has been subject to public mistrust due to fraud cases, which affects the social perception and complicates legal proceedings further.
5. Attempts to pass a comprehensive restitution law have repeatedly failed, leaving thousands of claims unresolved under a patchwork of administrative and judicial practices.

 
In 2016 and 2021, Poland introduced laws that limit the scope and timing of restitution claims, effectively reducing but not completely eliminating the possibility of filing the property restitution claims. The 2021 amendment to the Code of Administrative Proceedings introduced time limits on invalidating administrative decisions, which restricts the possibility of challenging past property nationalizations after 10 years. Additionally, it established a 30-year time limit for initiating proceedings to declare an administrative decision invalid. The amendment is perceived as limiting reprivatisation claims concerning real properties expropriated during the Communist era in Poland (1944-1989). It largely eliminates any possibility of filing motions to invalidate of nationalization decisions issued in the period 1944-1989.
 
Due diligence of the land and mortgage register is required
 
To determine what happened with an abandoned property in Poland, conducting due diligence of the land and mortgage register is essential. This process involves a thorough legal audit of the property to verify ownership, encumbrances such as mortgages, third-party claims and any other legal issues.
 
The land and mortgage register (księga wieczysta) is a public document maintained by district courts that records the legal status of the property, including ownership details, mortgages, easements, and any claims or restrictions. This register is crucial for understanding the property's legal status and legal title.
 
According to Polish law, abandoned properties - often those whose owners lost possession due to historical events like World War II - may have been transferred to the State Treasury or local government after a statutory period. Usually, the ownership rights have been confirmed through judicial decisions and entries in the land and mortgage registers have been made accordingly.
 
If a property was acquired through a judicial decision but there were serious procedural errors, it is indeed possible to file a petition to reopen the case. Courts may review such cases to ensure due process was followed. Acquisition by long-term possession have been handled through court proceedings and the court must carefully verify that all statutory conditions are met before granting ownership by long-term possession. If procedural errors occurred, such as improper handling of evidence or failure to observe legal requirements, this could be grounds for reopening the case. If the case is reopened, it is indeed possible for the decision to be made in favor of the pre-war owners or their family, provided certain conditions are met. Reopening a case is generally rare and requires valid reasons, such as new evidence that was not available during the original hearing or a significant change in circumstances.
 
Conclusion
 
Recovery of lost property in Poland is possible but involves a complex, multi-step legal process. Each restitution claim must be individually evaluated, considering specific legislation and circumstances of the property and heirs.
 
Woźniak Legal (www.wozniaklegal.com) possesses the expertise and experience necessary to effectively assist you. Our lawyers can assist you in determining what has happened with the lost property by analyzing the land and mortgage register and ownership records.
 
Please contact us on office@woznialegal.com.
You can also email me directly on grzegorz.wozniak@wozniaklegal.com.