Right to compensation not for the successor of real estate possession

The possessor’s heir claimed compensation

As pointed by Mr Kręglewski – our real estate attorney in Poland, the Supreme Administrative Court in the judgment of 5 November 2021 issued in the case ref. I OSK 788/19 held that compensation for restriction of the use of real estate in Poland is due only to the person entitled to the real estate at the time when the restriction was made. If the restriction is followed by acquisition of the real property, for example by inheritance, the acquirer obtains the right to the real property already restricted.

The case was related to compensation for expropriation

In the case in question, a decision was issued to restrict the use of the real property. On the initiative of the applicant (who was the legal successor of the possession of the real property), who acquired the property by way of acquisitive prescription, proceedings were initiated to determine the compensation for expropriation. The proceedings were discontinued on the grounds that the applicant was the legal successor of the possession, and not of the real property owner.

NSA: compensation only for the owner, also for legal successors

As the Supreme Administrative Court in Poland pointed out, both in the case of classic expropriation and restriction of the use of the real property, the entity entitled to compensation is the owner of real property or its perpetual usufructuary. It is not important when compensation is established. If the owner of the real property has not received compensation for the expropriation, the legal successor (for example, the heir) will be entitled to it. However, this will not be the case if the testator was not the owner of the restricted property. The property loss, which is supposed to be balanced by the compensation, is borne by the entity that at the moment of the restriction had the legal title (ownership) to the real estate.