The right of the tenant to acquisition agricultural property of the Treasury – the latest ultimate Court resolution

The tenant's right of precedence in the acquisition of agricultural property owned by the Treasury for years raises many questions and applicable doubts. The latest resolution of the composition of the 7 ultimate Court judges of 13 February 2025 (signal III CZP 8/24) brings an crucial ruling on this matter.

Position of the ultimate Court

The subject substance of the legal question was whether the granting of the right to acquisition the property to the lessor, resulting from Article 4(7) of the Act of 16 September 2011 amending the Act on the management of agricultural properties of the Treasury, results in the work of the State Treasury (as the owner) to undertake operations aimed at selling the property, or simply to establish the right of precedence on the part of the lessee.

In its resolution of 13 February 2025, the Council adopted a proposal for a regulation of the European Parliament and of the Council laying down general provisions on the protection of individuals with respect to the processing of individual data and on the free movement of specified data. The ultimate Court clearly stated:

‘Assignment of the owner of the agricultural property of the Treasury, pursuant to Article 4(7) of the Act of 16 September 2011 amending the Act on the management of agricultural property of the Treasury and amending certain another acts, of the right to acquisition the property under the precedence law provided for in Article 29 of the Act of 19 October 1991 on the management of agricultural property of the Treasury does not consequence in the work of the another organization to take action to conclude the contract of sale of that property.’

In practice, this means that the specified existence of the right of precedence does not give emergence to the work to sale to the State Treasury. This is only the privilege of the tenant, which can be exercised erstwhile the owner decides to sale the property.

Historical context

The issue of the right of precedence and the lease of agricultural property for years has raised a keen interest among farmers, lawyers and real property practitioners. Already in 2014, Mr Piotr Włodawiec published a broad review of the case law in this respect in the diary ‘Producer Magazine’.

We encourage you to read the extended article: LINK