Table of Contents:
- Purchaser’s Obligations
- Exclusion of the Right to Acquire Agricultural Real Estate by the Agricultural Property Stock Company (KOWR)
- Exercise of the KOWR Right
According to the provisions of the Act on Shaping the Agricultural System, as a rule, the purchaser of agricultural real estate may only be an individual farmer, and the area of the acquired agricultural real estate together with the area of agricultural land forming part of the purchaser’s farm cannot exceed 300 hectares of agricultural land determined in accordance with the aforementioned Act.
At the same time, Article 2a(3) of the Act on Shaping the Agricultural System provides that these restrictions do not apply to entities specified in this provision, and in connection with the addition of Article 2a(3) points 1(k) and (l), these restrictions on the acquisition of agricultural real estate also do not apply to the acquisition of such real estate by a family foundation from its founder or by a beneficiary of the family foundation, who is a close person to the founder of that family foundation, from the family foundation.
Purchaser’s Obligations
As a rule, the purchaser of agricultural real estate is obliged to run a farm, including the acquired agricultural real estate, for a period of at least 5 years from the date of acquisition, and in the case of an individual, to personally manage this farm.
During this period, the acquired real estate cannot be sold or transferred to other entities. However, these restrictions, due to the exemption introduced by the legislator, do not apply to:
agricultural real estate sold or transferred to a beneficiary of the family foundation, who is a close person to the founder of that family foundation, if the seller is the family foundation.
Exclusion of the Right to Acquire Agricultural Real Estate by the Agricultural Property Stock Company (KOWR)
As a rule, the Agricultural Property Stock Company (KOWR) has the right to acquire agricultural real estate if its acquisition occurs as a result of:
conclusion of an agreement other than a sales agreement, a unilateral legal act, or a court decision, administrative decision, or decision of a court or enforcement authority issued under the enforcement proceedings regulations, or another legal act or legal event, in particular adverse possession of agricultural real estate, inheritance, or a reversionary gift of agricultural real estate or farm, or division, transformation, or merger of commercial law companies.
Exercise of the KOWR Right
KOWR exercises its right by submitting a declaration of intent to acquire agricultural real estate for payment of the price of that real estate. In legal literature, the KOWR right to acquire agricultural real estate is also referred to as the “right of pre-emption” (not to be confused with the right of first refusal, which is regulated under Article 3 of the Act on Shaping the Agricultural System).
However, the above-mentioned KOWR right does not apply if the acquisition of agricultural real estate occurs through a beneficiary of the family foundation, who is a close person to the founder of that family foundation, and if the seller is the family foundation.
