Is a flat "for a transfer fee" a good idea?

On the internet, on property listing portals, you can almost always find a handful of residential units at very attractive prices. As with everything online, listings with incredibly attractive prices often either have some "catch", or are simply an outright scam. At least some of these exceptionally tempting listings carry the words "za odstępne" ("for a transfer fee"). What does that actually mean, and is it a good investment?

What is a "transfer fee" (odstępne)?

To find out, it is enough to visit a good estate agency, or read the article below. An "odstępne" is simply a fixed sum paid to the owner of a flat for the right to use it for a longer period of time. This does not mean that you acquire ownership of the flat, but you are registered as resident there for a period usually specified in the agreement. Moreover, provided that it is stipulated in the agreement, the owner will not be able to raise your rent throughout the period for which it was concluded. In many cases such an agreement also gives a right of first refusal to buy the flat once it ends, or obliges the tenant to renovate the unit. All such matters are set out in the transfer fee agreement. Renting for a transfer fee can therefore be an opportunity to acquire a flat at an attractive price. For the other party to the agreement, it is a chance to give the budget a one-off boost – remember that when renting for a transfer fee the owner receives a specified sum of money. Moreover, the owner also gets the chance to sell the flat later to the person who signed the transfer fee agreement. If the tenant decides not to buy it after the agreement expires, the owner can "transfer" the unit again. An experienced property negotiator will come in handy here too.

Is it really worth it?

As in every case, various matters should be considered: first, whether we want to rent the flat only for a fixed period of time, or whether our ultimate aim is to buy it at an attractive price. Likewise for the owner – whether they want to sell the flat or merely make it available for a time, for a transfer fee. In the first case, that is, if they want to sell, it would probably be better to visit a professional estate agency and immediately set about listing the flat for sale. Remember also that, just as with selling flats, when it comes to renting for a transfer fee there are dishonest owners too. It is also important that if you agree to renovate the unit, then with a rental for a transfer fee you have the right to be reimbursed for the costs.

How to approach it

Whatever the form of renting or acquiring a flat, it is always worth consulting an estate agent, who will help you carry out the whole procedure, from finding a home to finalising and signing the agreement. A transfer fee can be a good temporary solution, but if you are interested in buying a flat, it is best to consult an agency that will present the various possible purchase options, including through other channels. Buying the flat after a transfer fee arrangement can be attractive, but it is not always the best deal.