Is The Amount of Compensation for Real Estate Expropriation Just? Current State and Proposals for Changes

Authors

• Sabina Źróbek
• Ryszard Źróbek

Keywords:

Expropriation, compensation, real estate valuation

Abstract

Payment of compensation for expropriated real estate in Poland is guaranteed by the Constitution of the Republic of Poland. It contains a provision stating that the compensation for the compulsory purchase of real estate has to be just. The amount of the compensation is established by certified real estate appraisers. Real estate appraisal is governed by the provisions of the law of real estate management. As a matter of principle, the value of a real estate is established for current or alternative use, the latter concerning the use of the real estate after expropriation. In many cases, the owners of expropriated real estate feel aggrieved. This is because the legal provisions concerning the manner of calculation of compensations do not take into account other circumstances, which cause the deterioration of economic conditions and the change of social environment for the owners of the expropriated property. This paper presents the current state of calculation of compensation due in relation to real estate appropriation. It also presents a proposed broader look at the compensation for real estate expropriation. It suggests the need to improve the provisions of law and methods of real estate valuation in order to protect rights to the property in a better way.