The Sejm has adopted the long awaited amendment to the Building Law Act. The new regulations assume that the investment and building process will be simpler and faster and that the decisions made during the process will be more stable.

Less formalities will be required to obtain a building permit. It is assumed that building companies will need to file fewer documents at the stage of a building permit application or notification. Only a part of the current building design will have to be attached to the building permit application by the investor. The required number of design copies attached to the application will also be lower.

The procedure to authorise buildings erected illegally will also be simpler. The owner will not have to pay an authorisation fee if he notifies an illegal building being at least 20-years’ old to the building supervision authority and presents a technical survey confirming that the building may be used in a safe manner and an as-built survey  documentation.

According to the new regulations, the time limit to declare a building permit decision and occupancy permit decision invalid will be five years. As a result of the new solutions, it will not be possible to declare a building permit decision invalid if 5 years elapse from the delivery or announcement thereof, and in the case of an occupancy permit decision, if 5 years elapse from the day the occupancy permit decision becomes final and binding.

Further, the provisions defining structures the construction of which does not require a building permit or notification or requires only a notification will have a new wording. There will also be new exemptions from the obligation to obtain a  building permit.

The amendment also introduces solutions to regulate the issues regarding the occupancy of buildings without a relevant permit. Under the new regulations, it will be possible to impose repeated penalties on an investor or building owner for illegal occupancy thereof. At the same time, the procedures regarding commencement and continuation of building works contrary to the building law have been unified. Also, the case where a new entity acquires the ownership of a property for which a building permit has been issued or which has been subject to notification from an entity being the previous investor has been regulated. In such case, the previous investor does not need to approve the transfer of a building permit.

The regulations will surely streamline and accelerate the building process which may translate into an increase in the number of projects being developed. The removal of the excessive obligations on the part of the investor and clarification of the provisions that used to arouse serious interpretation doubts are positive developments. Introduction of a time limit up to which a building permit may be challenged will contribute to more stability of the investor’s activity and safety of real estate transactions. Before the amendment, it was possible to declare a building permit decision invalid even many years after the completion of the building. The amendment will also significantly streamline the  property due diligence process.

The amended regulations will become effective after 6 months of the announcement thereof (with some exceptions).