Non-tender sale of real estate

News / 01.02.2018

The Voivodship Administrative Court in Rzeszow (WSA), in an issued decision, rejected the complaint against the resolution of the City Council on granting permission for the non-tender sale of real estate to the Law Firm’s Client, who, due to the factual and legal circumstances, was the only entity with a legal interest in its purchase. In the complaint drafted, the applicant derived his legal interest from, among other things, the fact that through the City Council’s approval of the sale of the property to the Law Firm’s Client, he was deprived of the right to purchase it. The author of the complaint also claimed that he was a shareholder of a joint-stock company with a claim for reimbursement of expenditures made on the property, which was the subject of the contested resolution.

In its decision, the WSA indicated that the applicant did not have a legal interest in challenging the resolution, and therefore his complaint was subject to rejection. The court stated that in order to demonstrate a legal interest to challenge a resolution of the City Council, it is necessary to indicate a real and present legal interest, not a hypothetical one.

The WSA unequivocally stated that it was inaccurate to cite the property interest of the company, of which the applicant is a partner, since the company is a completely separate entity from the applicant, and therefore he cannot attribute to himself any property claims that the company has against the property.

In addition, in its ruling, the WSA stated that in light of judicial-administrative jurisprudence, Article 231 § 1 of the Civil Code is the special provision referred to in Article 37.2 sec. 1 in connection with Art. 34 sec. 1 item. 1 of the Act on Real Estate Management, which allows the municipality to dispose of real estate that is part of the municipal complex without a mandatory tender.