Selling a property encumbered with a personal servitude

As the owner of a property encumbered with a servitude, you need to know that it can be bought and sold. However, the presence of an occupant who holds a servitude entered in the land and mortgage register (księga wieczysta) has a real effect on the value of the whole property. How do you sell such a property? We have some tips!

• The rights of a person with a personal servitude
• An occupant with a servitude on my property
• Selling a plot with a personal servitude is possible
• A flat encumbered with a personal servitude – is it worth buying?

The rights of a person with a personal servitude

A personal servitude over a flat or house allows the person for whom it is established to use a specified part of the property (e.g. a room) to meet their own needs. The consumption-based nature of this arrangement is key. The most common case we have seen is a personal servitude in favour of an elderly person who, for example in a detached house, is entitled to particular rooms.

A personal servitude is not an obstacle to selling a property, but it presents the seller with a number of problematic issues that are worth taking into account, because they have a real effect on the property's value. Let us also remember that a personal servitude over a flat or house expires only on the death of the person who holds it (unless they give up the right earlier).

An occupant with a servitude on my property

The main purpose of a personal servitude is to meet the personal needs of the entitled person, and its beneficiary can only be a natural person named in the document (it cannot be a legal entity). The terms of the servitude arise from an agreement concluded between the owner of the property and the person for whom the servitude right was established. As a result, a person who is not the owner of the land can receive such a right.

A person who holds a personal servitude may live in the specified premises without having to pay the service charge (czynsz) or the cost of utilities (unless the agreement establishing the servitude provides otherwise). Such a person also has the right to use shared areas such as the kitchen, bathroom, cellar, attic and balcony. There is no obligation to care for the holder of a personal servitude – a right that is often confused with the right of life maintenance (prawo dożywocia).

We would also point out that a person holding a personal servitude may carry out internal renovation work within the part of the property to which the right applies.

A FLAT IN EXCHANGE FOR CARING FOR AN ELDERLY PERSON

Selling a plot with a personal servitude is possible

Many of the listings published on the property market state that the premises are encumbered with a personal servitude. Such premises are often considerably cheaper than their standard equivalents without an occupant. The inconvenience of having an occupant present for life can put off a buyer, especially if they were looking for a flat for themselves. For a property bought as an investment, such premises may seem attractive.

However, we recommend carefully studying the terms of the servitude agreement, which sets out the occupant's rights precisely. For people trying to finance the purchase with a mortgage, it should be noted that once the bank learns of an existing personal servitude, it will very probably reject our mortgage application.

SEE PROPERTY LISTINGS IN GLIWICE

A flat encumbered with a personal servitude – is it worth buying?

Are you looking for professional advice and help buying or selling a property as an investment? Turn to the specialists at the REMAX Gold estate agency. We will advise you in difficult situations such as a personal servitude encumbering premises that interest you.

For a property with such an encumbrance, the most important stage is analysing the agreement that establishes the servitude. On that basis we can determine how far the occupant will interfere with our everyday use of the premises. Properties with such an encumbrance are often a tempting bargain for a buyer, but let us remember that a servitude comes with serious consequences that we should be prepared for.