| Investor's A-Z |
1. Apostille Stamp The ‘Apostille', which is a French term for ‘certification', is issued by a designated government official of the country that issued the document to authenticated. The sole function of the apostille is to certify the authenticity of the signature on the document and the identity of any stamp or seal affixed to the document. The ‘apostille stamp' basically internationalizes a document such as a Power of Attorney allowing it to be used officially by the holder in a foreign country. 2. Public Notary In Ireland and the UK Public Notaries do not play such an important role in the transfer of property ownership as they do on the continent. The concept of a notary stems from the days when apart from the clergy, nobility and a select few no-one could read or write. It was then deemed necessary for an independent party who could read and write to make a ‘note' of any transaction or witness the signing of important documents or contracts. This gave rise to the occupation of ‘Public Notary'. In many European countries such as Poland, Notaries still play a very important role in the witnessing of property ownership transfer and the signing of contracts and agreements. A document, which is to be signed by a Public Notary in Ireland or the UK cannot be signed by a Solicitor, Commissioner for Oaths or Lawyer. Only in the case of them having separate title of ‘Notary Public' can they sign this document. 3. Land & Mortgage Register In Poland, every single piece of real estate whether it be a site, building, apartment, house or castle has it's own ‘book' which is kept in the Land & Mortgage registry court. What this means is that the history of that property from as far back is as possible is recorded in this ‘book'. All changes of ownership, dates when property changed hands, the Public Notary which witnessed the sale and all other relevant details are recorded in the register. Quite important also, is the fact that any mortgage, loan or encumberment is also noted in this register and it is usually the bank which has provided the mortgage that takes on the responsibility of registering the loan in the land & mortgage court. One will find that from the moment the bank release the first instalment of a mortgage ‘Bridging Insurance' is added to the monthly repayments. This insurance will continue to be paid on a monthly basis until the full amount of the mortgage has been paid out by the bank and the property has been registered in the new owners name and subsequently the mortgage taken out by the new owner to purchase the property has then to be registered in the property's ‘book'. Then the bank have secured their loan using the entry into the Land & Mortgage register as collateral. The bridging insurance will then stop being charged. 4. Weksel The simplest way to describe a Weksel is to call it an official, conditional ‘IOU'. The practice was originally conceived by the merchants and bankers of Northern Italy in the 12th and 13th centuries. Since then it has stayed in use throughout Europe. In Poland a Weksel is often used to back up penalty clauses of contracts which have financial implications. It is in fact similar to a blank cheque to a certain value which is signed by the party against who it is being used as security. Investors in Poland will come across a Weksel when signing a mortgage with a bank. Banks use Weksels as collateral. Even though the banks have registered the mortgage in a property's Land & Mortgage register as security they will still require the Weksel to be signed by the lender and it is then stamped by clerks in the local council offices and becomes an official document. The Weksel becomes invalid immediately after the final mortgage repayment has been made. 5. Mokotów  Mokotów is the name a district of Warsaw many investors will come across while doing research on where to buy in Warsaw. This district is on the west side of the Vistula river which divides the city of Warsaw. It covers a large area and is one of the most sought after districts to live in among Poles and ex-patriots living in Warsaw. Due to it's popularity properties in Mokotów generally command the highest prices outside the city centre. It is well serviced by the public transport system and one can travel to and through Mokotów using either trams, buses or the metro. Many embassies and consuls are also to be found along the leafy, mature streets which make up Old Mokotów. Directly south of the city centre, it's proximity to the business and shopping centres of Warsaw ensure it will remain in the top residential 3 districts for foreseeable future. 
6. ŻoliborzThis is a very elegant mature district which lies directly north of the city centre on the west bank of the Vistula river. It is sometimes called Officer's Żoliborz due to the fact that between the wars many officers of the Polish army occupied quarters in this area and after the German invasion of 1939 many German officers subsequently took up residence here. Full of small streets and squares, with many parks and trees, Żoliborz is a very popular place to live. It is very accessible as it boasts many bus-lines, tram-lines and now two of Warsaw's newest metro stations. 7. Śródmieście This is the city centre or downtown. else in the city.  The centre of Warsaw is
experiencing a wonderful period ofAs with the centre of most capital cities properties
here are more expensive than anywhere renewal and that is set to continue for
quite some time. There are quite a number of old buildings which are being
renovated and restored which are providing apartments for those who like to
live in the more classical styled buildings. On the other hand there are a
number of projects being launched over the next few months which will provide
the city with tall modern residential skyscrapers with all the mod cons perfect
for those who love the big city lifestyle. Large areas in the centre of Warsaw
like the old Jewish Ghetto district are seeing a lot of investment and many
large multinational companies are basing their Polish headquarters in this
area. To service these corporations we can see that over the past 2/3 years
some big players in the hotel market such as Radisson, Westin and the Hilton
group have opened hotels in this district. 8. Wola 
Wola is the
district which lies exactly east of the city centre, again on the west bank of
the Vistula river. Historically a little less popular than Mokotów or Żoliborz
it is now seeing a rise in popularity due to it's close proximity to the city
centre. In fact one can see that quite a bit of the newest office stock in
Warsaw is or has been delivered in Wola rubberstamping the importance it will
play in the future development of Warsaw. However prices are beginning to also
confirm this new status and are rising accordingly but are still somewhat
cheaper than the likes of Mokotów and Żoliborz. One thing to bear in mind is
that in the future the development plan for the city includes a new metro line which will run through Wola. They hope
to begin construction on this line sometime in 2007. Experts claim that in
Warsaw the metro has added at least 20% to the value of properties which are
located along it's route through the city. 9. Ochota 
Ochota is
located to the south west of the city centre with great transport links either
by tram or by bus to the centre. This district boasts many parks and like
Żoliborz and Mokotów has an old part with small streets lined with old city
villas or townhouses. It has seen quite a bit of development over the past few
years and has proved quite a popular residential district. It houses both
Polish professionals as well as ex-patriots as the standard of residential
developments is quite high as is the districts reputation. Like all of Warsaw's
main districts it is serviced by large modern shopping centres with cinemas,
theatres etc. There are a number of large international concerns which have
decided to build their Polish headquarters in this area and within the next few
years they will be joined by quite a few more modern office buildings which are
ready to leave the drawing board and increase the stock of high class office
space in Poland's capital.10. Saska Kępa 
The name
‘Saska Kępa' or in English - Saxon Settlement, is derived from the fact that
this area of Warsaw was originally where the ‘foreigners' lived, outside the
city walls on the east bank of the Vistula river. This is a very well respected
district and is home to many of Poland's politicians, celebrities and artists. This
part of Warsaw has historically been connected with ‘foreigners' and today we
can find many embassies and consuls along the small streets which are also
named for example ‘Irish Street', ‘French Street', ‘African Street' etc. This
district will also be close to Varsovians hearts as it is seen by many as it's
cultural centre and full of Bohemian spirit. 11. Wilanów Wilanów is a beautiful district south of the centre. The royal summer palace was built in Wilanów in the late 1600's by King Sobieski and he called it ‘Willa Nova' which is where we get the name Wilanów today.  Lying on the outskirts of the city it
is close to some of the forests which surround Warsaw. This district is seeing
the biggest concentration of construction and new developments anywhere in
Warsaw. In 5 years time it is estimated that an extra 25,000 people will live
in the area of Wilanów. That however will increase the strain on an already
limited transport facilities in the district. At the moment it is serviced only
by buses and two main roads and there are no plans to introduce either the
metro or trams to this suburb. Many investors are drawn to this are as there
are quite a few attractive developments under construction here but due to the
sheer number of apartments being bought by private investors and investment
funds the competition on the letting market when all developments are finished
could mean that some apartments lie empty for quite some time leaving the
investor to bear the burden of the mortgage repayments and building maintenance
costs. In short, Wilanów is a great ‘buy-to-live', offers good scope for
capital growth but could be a frustrating ‘buy-to-let'.
12. Bemowo This is a residential suburb of Warsaw on the western side of the river Vistula. In terms of the number of new apartments that are to be handed over in the next 18 months in Warsaw, Bemowo would rank quite highly on any list of where these residential units are located. Very popular among Polish professionals due to it's good transport links to the centre and amenities in the immediate area. It is regarded as a safe area to live in and is growing in popularity all the time. Warsaw's new metro line which will run from east to west will pass through Bemowo. This will not happen till at least 2012 but expect this to have a major effect on the attractiveness of property in this area. 
13. BielanyBielany lies in the north of Warsaw on the western bank of the river. Many eyes are on Bielany at the moment as there are many plots of land which have yet to be built up and prices are still reasonable in comparison to other districts in Warsaw. The most exciting development in Bielany over the next 2 years is surely the arrival of the metro line. This is under construction at the moment and is set to be completed at the end of 2008. This will ensure that Bielany moves up the list of most attractive districts in Warsaw. 14. Praga 
This is one
of Warsaw's poorest districts with historically high levels of crime and
unemployment with a certain unsavoury element always visible on the streets. It
was one of the areas least destroyed by the fighting which Warsaw saw during
the second world war. As a result this part of the city boasts many pre-war
buildings which locals claim is the only district in the city where we can get
a good idea of how pre-war Warsaw really looked. Due to it's location, right in
the heart of the city centre on the left bank of the Vistula river, many
investors are seriously considering taking a longer term option in this
district. There are many new
investments planned for this area which will completely change the face of
Praga over the years to come. The national sports centre, i.e. national
football stadium, Ministry of sport, Olympic swimming complex as well as other
sporting facilities, will be built here and will host the opening ceremony and
opening game of the European football championships in 2012. A new marina will
also be constructed around one of Praga's old industrial ports. The metro line
will also have reached Praga by 2012 to accommodate the thousands of fans
travelling to this district during the football championships.  15. UrsynówThis district is located at the southern end of the current metro line which runs from north to south in Warsaw. It is directly south of Mokotow. This district has a very good reputation and many local Polish professionals and white collar workers reside in Ursynow. It has it's own shopping centres, cinema complex and most attractive of all it is right on the doorstep of a large forest park complex which is full every weekend with the inhabitants of Ursynow on their bikes, walking, playing or simply having a picnic in the forest. 16. Bridging Insurance Bridging insurance is a form of security used by banks in real estate transactions. In Poland when one purchases a new apartment it takes a couple of months for the new owners to be registered in the land and mortgage register for that particular apartment. Only after the new owner has been entered into the land and mortgage register can the bank write the mortgage into the registry against that property. Until this happens that bank cannot use the property as security against the amount lent to the purchaser even though they have already paid out the full amount of the mortgage. In order to reduce the risk in a situation like this the bank require that the client take out bridging insurance. This insurance covers the period from when the bank has paid out the mortgage to the time that mortgage has been secured against the property in the land and mortgage registry, hence the term ‘bridging' insurance. The premiums are calculated as a percentage of the mortgage value and are payable on a monthly basis until the mortgage has been registered. 17. Reservation Contract This type of contract is generally used by developers to allow the purchaser to hold a property for a period of 2/3 weeks prior to signing a preliminary agreement. This period is sometimes necessary for the preparation of certain documentation in order to sign the preliminary contract. This type of contract is usually in civil form and rarely in Notarial form. Often a developer will require a small payment of up to 1000 Euro as a deposit to accompany this contract. Another reason this type of contract is used by developers is when the developer has not yet received a building permit for a particular development. According to Polish law, developers are not allowed sign preliminary agreements for developments which don't have valid building permits, therefore a reservation contract allows them to begin taking reservations long before the building permit has been granted. 18. Preliminary agreement Most often preliminary agreements are encountered when purchasing apartments off-plan. Some developers require them to be signed in Notarial form but very often they are signed in standard civil contract format. A purchaser has every right according to Polish law to demand that the contract is signed in Notarial form which is basically a stronger type of contract. This type of contract secures the exclusive rights to purchase a particular property when the ownership is ready to be transferred from the developer to the purchaser, i.e. when the building has been constructed. It is on the basis of this contract that all payments are made to the development company. If an investor is availing of bank financing to purchase a property then the bank will require a copy of the preliminary agreement as part of the mortgage application. This is also true when purchasing second hand or existing property by way of bank financing. Rather than sign a final contract to transfer the ownership one must first sign a preliminary contract which secures the investor's rights to purchase the apartment and at the same time allows the bank time to process the mortgage application This generally takes about 4 weeks. In all cases a payment of up to 20% is standard when signing a preliminary contract. 10% is perceived as the norm when purchasing second hand property. 19. Final sales contracts In all cases where a piece of real estate changes ownership the final sales contract is signed in Notarial form. It is only after the signing of such a contract that the property can be registered in the name of the purchaser. The final sales contract in Notarial form represents the deeds of the property in Poland. When purchasing a second property it is possible to avoid signing a preliminary contract and go directly to signing the final sales agreement if financing is already in place and one does not intend to use bank financing to purchase the property. |
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