New regulations pertaining to administrative proceedings regarding the so-called “Warsaw lands” are compliant with the Constitution

On 19 July 2016, upon the President’s motion, the Constitutional Court reviewed compliance of amendments to the Real Estate Management Act, i.e. art.: 214a and art. 214b with the Constitution (case file No. Kp 3/15).

The amendments significantly affect judicial decisions in administrative proceedings for the establishment of perpetual usufruct right pursuant to the so-called Warsaw Decree (the Decree of 26 October 1945 on the Ownership and Use of Land in the Capital City of Warsaw (Journal of Laws No. 50, item 279)).

Art. 214a introduces certain criteria for dismissal of motions for the establishment of perpetual usufruct right and article 214b provides for discontinuation of proceedings if the parties and/or their addresses cannot be identified (e.g. if a motion was filed 70 years ago and has not yet been resolved).

In the President’s opinion, amendments attempt to limit the rights of former owners of Warsaw lands, which constitutes a breach of the following principles of the Constitution: the principle of citizen’s trust in the state and its legislation, the lex retro non agit principle and the principle of protection of acquired rights.

The Constitutional Court has nevertheless ruled that the new amendments to the Real Estate Management Act are compliant with the Constitution.

The Court was of the opinion that the amendments  mainly unified and re-organized the already binding and applied in practice criteria for dismissal of motions for establishment of perpetual usufruct rights of former land owners and their legal successors. Moreover, legal solutions introduced by the amendments would ensure stability of ownership and legal protection of the entities currently holding respective rights to Warsaw lands.

The Court emphasized that the adopted regulations were justified for economic and functional reasons. On their basis the proceedings formally opened upon motions of former owners in the 1940s which cannot be currently resolved because heirs of the petitioners are unknown would be finally closed. This in turn would regulate the legal status of the properties which, for several dozen of years now, have been encumbered with claims of unidentified persons.

Article 214a and 214b of the Real Estate Management Act came into force and effect on 17 September 2016 and are applicable to prior opened proceedings.

Author: Konstancja Paczkowska, Lidia Wesołowska