Geomatics and Environmental Engineering, vol. 17, no. 2

Issue

Vol. 17 No. 2 (2023): Geomatics and Environmental Engineering

Date Log

Submitted
Oct 17, 2022
Accepted
Nov 29, 2022
Published
Jan 31, 2023
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

The Benefit Principle in Determining Compensation for Real Estate Expropriation

https://doi.org/10.7494/geom.2023.17.2.89
Anna Trembecka
AGH University of Science and Technology, Faculty of Geo-Data Science, Geodesy, and Environmental Engineering, Krakow, Poland
https://orcid.org/0000-0001-5098-7649

Corresponding Author(s) : Anna Trembecka

trembec@agh.edu.pl

Geomatics and Environmental Engineering, Vol. 17 No. 2 (2023): Geomatics and Environmental Engineering

Abstract

Polish expropriation law introduces a compensation system based on the socalled “benefit principle”. This principle assumes estimating the value of the property based on its intended use if it results in a greater value. The problem of considering the intended purpose of expropriation and, consequently, the application of the benefit principle is widespread in compensation proceedings relating to road investments.
The research objective of this paper is an attempt to answer the question of whether the benefit principle should be maintained in the real estate appraisal procedure in order to determine compensation, i.e. whether the intended use resulting from the purpose of expropriation should be taken into account if it increases its value. The research also focuses on identifying those factors that should be considered instead of the benefit principle in order to estimate fair compensation for expropriated real estate. Part of the study is also devoted to the assessment of planned changes in legal regulations regarding compensation proceedings.
The subject of the research are procedures and regulations for determining compensation for real estate expropriated for road investments in Poland. The analysis covers the stages of the compensation procedure and the factors affecting the amount of compensation. These procedures were compared with those in force in other countries in the context of applying the benefit principle.
The results of the analysis lead to the conclusion that the amount of compensation should be independent of the intended purpose of expropriation. This is because planning classification for public purposes cannot be treated as a criterion which increases the market value of the expropriated property.

Keywords

compensation expropriation property value benefit principle
Trembecka, A. (2023). The Benefit Principle in Determining Compensation for Real Estate Expropriation. Geomatics and Environmental Engineering, 17(2), 89–104. https://doi.org/10.7494/geom.2023.17.2.89
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX
References
  1. Ustawa z dnia 21 sierpnia 1997 r. o gospodarce nieruchomościami. Tekst jednolity: Dz.U. 2021, poz. 1899 [The Act of 21 August 1997 on Real Estate Management. Consolidated text: Journal of Laws of 2021 item 1899].
  2. Kozłowska M.K.: Specustawa drogowa jako narzędzie prawne usprawniające realizację inwestycji drogowych w Polsce. Przegląd Komunikacyjny, R. 73, nr 2, 2018, pp. 28–32.
  3. Ustawa z dnia 10 kwietnia 2003 r. o szczególnych zasadach przygotowania i realizacji inwestycji w zakresie dróg publicznych. Tekst jednolity: Dz.U. 2022 poz. 176 [The Act of 10 April 2003 on special rules for the preparation and implementation of investment in public roads. Consolidated text: Journal of Laws of 2022 item 176].
  4. Trembecka A.: Analysis of geodetic and legal documentation in the process of expropriation for roads. Krakow case study. Geodesy and Cartography, vol. 62(1), 2013, pp. 67–84. https://doi.org/10.2478/geocart-2013-0004.
  5. Trembecka A.: Wpływ nieuregulowanych stanów prawnych nieruchomości na proces ustalania odszkodowań za nieruchomości wywłaszczone pod drogi [The influence of undetermined legal status of real properties on the process of determining compensation for properties expropriated for roads]. Świat Nieruchomości, nr 100, 2017, pp. 23–29. https://doi.org/10.14659/worej.2017.100.04.
  6. Rządowy projekt ustawy o zmianie ustawy o gospodarce nieruchomościami oraz niektórych innych ustaw [Government bill amending to the Real Estate Management Act and other acts]. https://www.sejm.gov.pl/sejm9.nsf/druk.xsp?nr=2349 [access: 13.10.2022].
  7. Land Tenure Studies 10. Compulsory acquisition of land and compensation. Food and Agriculture Organization of the United Nations, Rome 2008.
  8. Larbi W.O., Antwi A., Olomolaiye P.: Compulsory land acquisition in Ghana – policy and praxis. Land Use Policy, vol. 21(2), 2004, pp. 115–127. https://doi.org/10.1016/j.landusepol.2003.09.004.
  9. Rao J., Hutchison N., Tiwari P.: Analysing the process of compulsory acquisition of land through the lens of procedural fairness: evidence from Scotland. Journal of Property Research, vol. 37(1), 2020, pp. 62–84. https://doi.org/10.1080/09599916.2020.1713859.
  10. Coruhlu Y.E., Uzun B., Yildiz O.: Zoning plan-based legal confiscation without expropriation in Turkey in light of ECHR decisions. Land Use Policy, vol. 95, 2020, 104598. https://doi.org/10.1016/j.landusepol.2020.104598.
  11. Tagliarino N.K., Bununu Y.A., Micheal M.O., De Maria M., Olusanmi A.: Compensation for expropriated community farmland in Nigeria: An in-depth analysis of the laws and practices related to land expropriation for the Lekki Free Trade Zone in Lagos. Land, vol. 7(1), 2018, 23. https://doi.org/10.3390/land7010023.
  12. Wrześniak I.: Wywłaszczenie z prawa własności nieruchomości gruntowej pod budowę drogi publicznej – tryb – odszkodowanie. Przegląd Komunikacyjny, R. 74(8), 2019, pp. 21–27.
  13. Źróbek R.: Teoria i praktyka wywłaszczania nieruchomości w Polsce i Niemczech. Acta Scientiarum Polonorum. Administratio Locorum, vol. 5(1–2), 2006, pp. 5–16.
  14. Šumrada R., Ferlan M., Lisec A.: Acquisition and expropriation of real property for the public benefit in Slovenia. Land Use Policy, vol. 32, 2013, pp. 14–22, https://doi.org/10.1016/j.landusepol.2012.10.004.
  15. Bertolinelli M., Fabbri M., Masotto L., Pirani A.: The distortion of the land market due to plans for the infra-structure of the region: Criteria for alternative valuation. Aestimum, 2012, pp. 601–616. https://doi.org/10.13128/Aestimum-13165.
  16. Cao Y., Dallimer M., Stringer L.C., Bai Z., Siu Y.L.: Land expropriation compensation among multiple stakeholders in a mining area: Explaining “skeleton house” compensation. Land Use Policy, vol. 74, 2018, pp. 97–110. https://doi.org/10.1016/j.landusepol.2017.09.003.
  17. Kabanga L., Mooya M.M.: Compensation Theories and expropriation of customary property rights: A critical review. Journal of African Real Estate Research, vol. 3(2), 2018, pp. 87–106. https://doi.org/10.15641/jarer.v3i2.487.
  18. Kombe W.J.: Land acquisition for public use, emerging conflicts and their socio-political implications. International Journal of Urban Sustainable Development, vol. 2(1–2), 2010, pp. 45–63. https://doi.org/10.1080/19463138.2010.520919.
  19. Kalbro T.: Compulsory Acquisition of Land – Compensation for Development Values. Integrating Generations FIG Working Week 2008, Stockholm, Sweden 14–19 June 2008. http://www.fig.net/resources/proceedings/fig_proceedings/fig2008/papers/ts04b/ts04b_02_kalbro_2769.pdf [access: 13.10.2022].
  20. Šubic-Kovač M., Rakar A.: Model vrednotenja zemljišč kategoriziranih cest za namene pravnega prometa [Real estate valuation model for categorised roads for the purposes of legal transactions]. Geodetski vestnik, 54(2), 2010, pp. 253–266. https://doi.org/10.15292/geodetski-vestnik.2010.02.253-266.
  21. Hełdak M., Stacherzak A., Płuciennik M.: Analiza zasad wyceny nieruchomości przeznaczonych na cele dróg publicznych [An analysis of valuation principles of the properties intended for public roads]. Studia i Prace WNEiZ US, nr 45(1), 2016, pp. 281–292. https://doi.org/10.18276/sip.2016.45/1-22.
  22. Wolanin M., Gdesz M.: Zasada korzyści w wycenie nieruchomości przeznaczonych na cele publiczne. Nieruchomości C.H. BECK, nr 2, 2022.
  23. Walacik M.: Opracowanie zasad ustalania wysokości słusznego odszkodowania za nieruchomości przejęte na cele publiczne. Wydawnictwo NDB, Olsztyn 2014.
  24. Brucko-Stępkowski K.: Odszkodowanie za wywłaszczenie nieruchomości obciążonej hipoteką. Monitor Prawniczy, nr 4, 2012, pp. 183–190.
  25. Voss W.: Compulsory purchase in Poland, Norway and Germany – Part Germany. [in:] XXIV FIG International Congress 2010, Facing the Challenges – Building the Capacity, Sydney, Australia, 11–16 April 2010, pp. 1–20.
  26. Code de l’expropriation pour cause d’utilité publique (version in force 3.05.2021). https://www.legifrance.gouv.fr/codes/id/LEGITEXT000006074224/2021-05-03 [access: 13.10.2022].
  27. Fisher G.: Compulsory purchase compensation: A glimpse of eminent domain in the United Kingdom. Right of Way Magazine, September/October 2010, pp. 26–29.
  28. Rozporządzenie Rady Ministrów z dnia 21 września 2004 r. w sprawie wyceny nieruchomości i sporządzania operatu szacunkowego. Tekst jednolity: Dz.U. 2021 poz. 555 [Regulation of the Council of Ministers of 21 September 2004 on the property valuation and the preparation of an appraisal study. Consolidated text: Journal of Laws of 2021 item 555].
  29. Rozporządzenie Ministra Rozwoju, Pracy i Technologii z dnia 27 lipca 2021 r. w sprawie ewidencji gruntów i budynków. Tekst jednolity: Dz.U. 2021 poz. 1390 [Regulation of the Minister of Development, Labor and Technology of 27 July 2021 on land and building records. Consolidated text: Journal of Laws of 2021 item 1390].
  30. Ustawa z dnia 17 maja 1989 r. – Prawo geodezyjne i kartograficzne. Tekst jednolity: Dz.U.2021 poz. 1990 [The Act of 17 May 1989 Geodetic and Cartographic Law. Consolidated text: Journal of Laws of 2021 item 1990].
  31. Trembecka A.: Gospodarka nieruchomościami: teoria i praktyka. Wydawnictwa AGH, Kraków 2015.
  32. Predko M. (red.): Odszkodowania za nieruchomości przeznaczone na cele inwestycji liniowych. Ministerstwo Transportu, Budownictwa i Gospodarki Morskiej, Warszawa 2012.
  33. Uchwała Senatu Rzeczypospolitej Polskiej z dnia 6 października 2022 r. w sprawie ustawy o zmianie ustawy o gospodarce nieruchomościami oraz niektórych innych ustaw [Resolution of the Senate of 6 Octobre 2022]. https://www.sejm.gov.pl/sejm9.nsf/druk.xsp?nr=2685 [access: 13.10.2022].
  34. Code de l’expropriation pour cause d’utilité publique, Art. I, 13–15. https://www.legifrance.gouv.fr/codes/article_lc/LEGIARTI000006840178 [access: 19.12.2022].
  35. Baugestezbuch. www.gesetze-im-internet.de/bbaug [access: 27.12.2022].
  36. The Law Commission: Consultation Paper No 165 – Towards a compulsory purchase code: (1) compensation. A Consultative Report. TSO, London. https://www.lawcom.gov.uk/app/uploads/2015/03/cp165_Towards_a_Compulsory_Purchase_Code_Consultation1.pdf [access: 19.08.2022].
  37. Expropriation Act (R.S.C., 1985, c. E-21). https://laws-lois.justice.gc.ca/eng/acts/e-21/fulltext.html?wbdisable=true [access: 27.12.2022].
  38. Ustawa z dnia 21 marca 1985 r. o drogach publicznych. Dz.U. 2022 poz. 1693 [The Act of 21 March 1985 on public roads. Journal of Laws of 2022 item 1693].
Read More
Author biographies is not available.
Download this PDF file
PDF
Statistic
Read Counter : 234 Download : 181

Downloads

Download data is not yet available.