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«85 GEOMATICS AND ENVIRONMENTAL ENGINEERING · Volume 2 · Number 1 · 2008 Ryszard róbek*, Sabina róbek* Expropriation as an Exeptional Tool of ...»

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According to the Real Estate Management Act, compensation for expropriated real estates should be paid out as a lump sum within 14 days of the day on which the decision regarding expropriation and the amount of compensation became final. Compensation may be placed in the escrow deposit, which is regarded as if the compensation was paid. The compensation determined in the decision is subject to indexation as of the date of payment. Such a situation may occur in case the compensation is not paid within 14 days The requirement of indexation does not apply to the compensation correctly placed in the escrow deposit. Indexation of the compensation paid is done with the use of real estate price change indicators announced by Chairman of the General Statistics Office in “Monitor Polski”, the RP official journal. Until the indicators are announced, indexation is declared with the use of price indicators of consumer goods and services, announced by this organ in the same official journal. As part of compensation, owners or holders of perpetual usufruct of real estates being expropriated may be offered, and have the right to accept or reject, an adequate substitute real estate.

The difference between the amount of compensation determined in the decision and the value of the substitute real estate is balanced with a supplementary payment in cash. The real estate is to be “adequate”, which means that it should possess the same features as the expropriated real estate, e.g. area, intended purpose in the spatial development plan, location etc.). Naturally, only an authorized person may propose that another real estate be granted in exchange, and the person has no right to demand it.

4. Final remarks The power of the state to seize a citizen’s private property or rights in property without the owners consent has a different names through the world. In Poland we usually use the term – expropriation, but for example in United States – eminent domain, in United Kingdom – compulsory purchase or compulsory acquisition in Australia [6].

Expropriation may ultimately bring benefits to society but it is disruptive to people whose land is acquired. In many cases, persons being expropriated feel aggrieved by the very fact the expropriation itself as well as by the amount of compensation offered to them. The compensation equal to the market or cost-based value of their built over real estate in some cases proves too low to buy a new real estate. This is the case when the local market offers no similar real estates for sale, Expropriation as an Exeptional Tool of Acquisition of Land... 93 and the cost of purchase of a plot of land and raising a new building is higher than the compensation received.

For all these reasons, there is an urgent need to discuss ways to improve the provisions of the law and the methods of real estate appraisal for the purpose of expropriation. Due to the interference of the state and local governments into the general principle of protecting the right of ownership, the problem of compensation for real estate expropriation touches not only the economic, but also the psychological sphere [7, 8].

Unfair procedures for the compulsory purchase of land and inequitable compensation for its loss can reduce land and inequitable compensation for its loss can reduce land tenure security, increase tension between the government and citizens an reduce public confidence in the rule of law. So transparent procedures are needed and legislation to establish the government’s power to expropriation land should be written clearly and with precision. People should be compensated in such a way that they are no worse off than they were before the expropriation process started The following conclusions of the workshop organized by FIG-Commission 9

in Helsinki and published by FAO [2] are among others:

Valuation and compensation should be based on the facto interests rather de jure interest. Compensation for the facto interests may be calculated on the basis of what would have occurred had the land not been acquired.

The acquiring agency should take steps to ensure that there are a sufficient number of independent valuers and advocates to help people to assess their compensation claims.

The procedures should not be intimidating to people, allowing them to present their own cases.

References [1] Directive dated 21 September 2004 regarding real estate valuation and the preparation of a appraisal study (Journal of Law, No 207/2004) [in Polish].

[2] FAO 2007 – Compulsory acquisition of land and compensation. FAO of the UN Rome.

[3] Kuty³a M.: Constitutional aspects of protection of ownership right in Poland. Article UNECE WPLA Workshop, Munich (Germany) 2007.

[4] The Constitution of the Republic of Poland. 2 April 1997, www.sejm.gov.pl.

[5] Real Estate Management Act of 21 August 1997 (Journal of Law, No 261/2004 with changes) [in Polish].

94 R. róbek, S-. róbek [6] Wikipedia, the free encyclopedia, http://en.wikipedia.org.

[7] róbek R., róbek S.: An assessment and proposed changes to the principles and procedures of real estate expropriation after 1945 in Poland. FIG Workshop, Helsinki 2007.

[8] róbek R., róbek S.: Is the amount of compensation for real estate expropriation

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