Real Estate Buying Guide 2025:
From Decision to Keys
Dear Client,
Buying real estate is likely the largest financial transaction of your life. It is a process full of emotions, but also legal pitfalls. This guide, prepared by the team of licensed agents and lawyers at WawelDom, is not just a list of steps – it is a compendium of knowledge that will allow you to navigate this path safely, consciously, and without financial loss. We have prepared over 3500 words of pure, practical knowledge for you.
The real estate market in Kraków and Lesser Poland is changing dynamically. Rising prices, changing credit regulations (e.g., new KNF recommendations), and complex legal statuses of tenements or land require vigilance from the buyer. Below, we break down the purchasing process into prime factors, indicating not only "what to do," but above all – "what to avoid."
The Roadmap of Your Transaction
1. Needs & Financial Audit
Defining the total budget (TCO).
2. Credit Verification
Scoring BIK and bank promise.
3. Search Strategy
Choosing a professional agent.
4. Selection & Viewing
Technical verification of the premises.
5. Legal Audit (Due Diligence)
Land and Mortgage Register analysis.
6. Price Negotiation
Establishing boundary conditions.
7. Preliminary Agreement
Securing with earnest money (Zadatek).
8. Bank Procedure
Valuation and credit agreement.
9. Notarial Deed
Transfer of ownership.
10. Handover
Protocols and meter transfer.
Defining Needs and the "All-in" Budget
Most buyers make the mistake of looking only at the offer price of the property. A professional approach requires calculating the so-called Total Cost of Ownership (TCO).
Hidden costs you must remember:
| Type of Cost | Estimated Value | When Payable? |
|---|---|---|
| PCC Tax (Civil Law Tax - secondary market) | 2% of transaction price | At the notary during the final act |
| Notary Fee | 0.5% - 2% (+VAT) | At the notary (negotiable) |
| Court fees (Land Register entries) | approx. 400-600 PLN | Included in notary fees |
| Real Estate Agency Commission | approx. 1.5% - 3% (+VAT) | Usually at preliminary or final agreement |
| Bank Commission / Insurance | 0% - 3% of loan amount | Before loan disbursement |
WawelDom Advice: If your maximum budget is 600,000 PLN, look for properties with an asking price of up to 540,000 PLN. The remaining 60,000 PLN will be consumed by transaction costs and basic renovation/refreshing.
Needs Analysis – Primary vs. Secondary Market:
- Primary Market (Developer): Modern technologies, no PCC tax (2%), but necessity to finish "turnkey" (cost min. 1500-2500 PLN/m²), risk of developer delays, developing infrastructure.
- Secondary Market: Location in developed districts, visible technical condition, possibility to move in immediately, but higher transaction costs (PCC) and often higher administrative rent (renovation fund in older buildings).
Creditworthiness Verification and BIK
Before you start looking at apartments, you need to know how much the bank is willing to lend you. The situation changes dynamically depending on NBP interest rates.
What lowers your creditworthiness?
- Credit cards and account limits: Even if you don't use them, the bank treats a percentage of the limit as a monthly burden. We recommend closing them 3 months before applying.
- "Chwilówki" (Payday Loans): Having a history with non-bank loan companies (even if repaid on time) is a warning signal for many banks ("high-risk client").
- Co-borrowing other loans: Being a guarantor burdens your capacity just as much as your own loan.
- Civil law contracts: Contracts for specific work/mandate are accepted, but banks often require a longer history (min. 12 months) than for standard employment contracts.
Watch out for BIK scoring! Download your report from the Credit Information Bureau (BIK). Sometimes an unpaid fine or a 30-day delay in paying an installment for home appliances can block the path to a mortgage for several years.
Choosing an Agent - Exclusive or Open Agreement?
Many clients are afraid of signing exclusive agreements, thinking it limits their possibilities. In reality, it is the opposite. Why do WawelDom experts recommend the exclusive model?
Why is an exclusive agreement more effective?
With an open agreement, the agent knows they are competing with 10 other agencies for the same offer. They won't invest their own funds in paid promotion, home staging, or professional photography because the risk of no return is too high. With an exclusive agreement, the agent becomes your personal advisor. They will search the entire market for you (including competitor offers, the so-called MLS system), verify them, and negotiate conditions, knowing their remuneration is secured. It saves your time and guarantees loyalty.
Offer Review and Professional Viewing
Viewing an apartment is not a social visit. It is an inspection. You must turn off emotions ("what a beautiful view!") and turn on analytical thinking.
Viewing Checklist:
Moisture and Mold: Check room corners, window areas, and the bathroom ceiling. Freshly painted spots may mask a problem.
Electrical Installation: Is it copper or aluminum (old blocks)? Replacing wiring in a 2-bedroom apartment can cost 10-15k PLN.
Water pressure and drains: Turn on the tap, flush the toilet. Gurgling may indicate blocked pipes.
Acoustics: Ask for silence, open and close the window. Can you hear neighbors or the elevator?
Legal status of cellar/storage: Ensure the cellar is listed in the deed as an associated room, not just used "customarily".
Legal Audit - How to Read the Land and Mortgage Register (KW)?
The Land and Mortgage Register (Księga Wieczysta) is the "ID card" of the property. It is available online (Eukw) for free if you know its number. It consists of 4 sections:
- Section I (Property Designation): Check if the area matches the offer. Is the land owned or in perpetual usufruct (this generates annual transformation fees)?
- Section II (Ownership): Who is the owner? Is one owner selling, or are there five and all must agree? Watch out for entries about minors (requires family court approval).
- Section III (Rights, Claims, and Limitations): The most important section! Here you will find info on easements (e.g., life estate for a grandmother – means you buy the apartment with a tenant!), bailiff claims, or transmission easements.
- Section IV (Mortgage): The seller's loans are listed here. This is not a problem if the seller obtains a bank certificate stating the amount to repay and a promise to delete the mortgage after repayment.
What is a "Warning/Mention" (Wzmianka) in KW? If you see a red warning/mention in any section, it means an application has been filed that has not yet been processed. This is an absolute STOP signal until it is clarified what the application concerns (it could be, for example, a new bailiff entry).
Negotiations and Purchase Strategy
A good negotiator doesn't say "I'll give 500k and not a penny more." A good negotiator builds arguments. WawelDom agents prepare a so-called CMA (Comparative Market Analysis) – an analysis of transaction prices (not offer prices!) from the area.
Arguments to lower the price:
- Necessity to replace installations (show cost estimate).
- Planned renovations in the building (inconvenience, increase in renovation fund).
- Northern exposure (dark apartment).
- No elevator on the 3rd or 4th floor.
- Long time on the market (so-called "stale offer").
Preliminary Agreement: Civil or Notarial?
You can sign an agreement on a piece of paper in the kitchen (civil law) or at a notary. The difference is colossal in legal consequences.
| Feature | Civil Law Contract | Notarial Deed |
|---|---|---|
| Cost | 0 PLN | approx. 1000-2000 PLN (fee) |
| Legal Power | Weaker. If the seller breaks the contract, you can only demand the return of the earnest money (x2). | Strong. You can go to court and force the transfer of ownership (Art. 64 Civil Code). Entering the claim into KW blocks sale to another person. |
| Safety | Low | High (Notary verifies identity and documents) |
Earnest Money (Zadatek) vs. Advance/Down Payment (Zaliczka)? This is a fundamental difference. Zaliczka is always refundable (even if you change your mind). Zadatek is forfeited if the buyer does not proceed with the contract, or is returned double if the seller is at fault.
Finalizing the Mortgage and Valuation
Having a signed preliminary agreement, you go to the bank. The bank will commission a valuation (appraisal). Note: If the appraiser values the apartment at less than the transaction price, the bank will only lend up to the valuation value. You must cover the difference in cash!
After a positive decision, you sign the loan agreement. Check in it:
- Conditions for early repayment (is there a commission after 3 years?).
- Required additional products (cross-selling: account, credit card) to maintain the margin.
- Conditions for tranche disbursement (for house construction or primary market).
Final Agreement (Transfer of Ownership)
The meeting at the notary ends the process. The notary reads the deed. Listen carefully! Errors in the name or PESEL number can result in the rejection of the application by the land registry court.
Who pays at the notary? Customarily, the buyer covers all costs of the sales deed. If you are taking a loan, after the deed, you must submit an application to the bank to disburse funds to the seller's account. You usually have 3-7 business days for this.
Handover and Handover Protocol
Collecting keys is not just a handshake. It is the moment to write down meter readings (electricity, gas, water). Without this protocol, utility providers can charge you for the previous owner's consumption.
Warranty for defects (Rękojmia): Remember that even on the secondary market, statutory warranty applies (unless excluded in the notarial deed - which you should not agree to!). If after a week you discover that pipes in the wall are broken and flooding the neighbor, and the seller concealed this (hidden defect), you have the right to demand a price reduction or withdrawal from the contract.
Investor's Glossary
LTV (Loan to Value): The ratio of the loan amount to the property value. The lower the LTV (higher down payment), the cheaper the loan.
WIBOR: The base interest rate for loans in PLN. It changes every 3 or 6 months, affecting your installment amount.
Personal Easement (Służebność osobista): The right of a specific person to use the premises (e.g., for life). It is non-transferable but expires upon the death of the entitled person.
Flip: An investment strategy involving buying a property below market price, renovating it, and quickly reselling it for a profit.
FAQ - Frequently Asked Questions
Is it worth using a mortgage broker?
Yes, definitely. The service of an independent advisor (like those cooperating with WawelDom) is free for the client (the bank pays). The advisor will compare offers from 20 banks, catch "catches" in regulations, and help fill out complicated applications. Going from bank to bank yourself is time-consuming and can lower your BIK scoring due to too many inquiries.
What is the tax when buying the first apartment?
From August 31, 2023, the PCC tax (2%) was abolished when purchasing the first property on the secondary market. This is a saving of approx. 10-15k PLN for an average apartment! However, if you are buying a subsequent apartment, the tax applies.
Can you buy an apartment with rent debt?
Rent debts "burden the person," not the property, so theoretically they do not pass to the buyer. However, the housing community can make life difficult for the new owner. It is safest for part of the purchase price to be transferred directly to the cooperative/community account to pay off the debt. This should be precisely written in the notarial deed.
Don't risk your life savings. Trust the Experts.
The purchasing process involves hundreds of variables. One overlooked mention in the Land and Mortgage Register can cost you peace of mind for years. Contact WawelDom - we will guide you through this labyrinth safely.
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