Buildings on the Edge of the Law: The Impact of a Building Crossing Property Boundaries on the Investment Market and Legal Transactions

Abstract

The article explores the legal and practical implications of buildings that cross property boundaries, a common issue in densely developed urban areas. It outlines the fundamental principle of superficies solo cedit, which assigns ownership of structures to the landowner, and examines exceptions introduced by Article 151 of the Polish Civil Code. These exceptions allow for the retention of a boundary-crossing building under specific conditions, impacting property transactions and ownership security. Special attention is given to perpetual usufruct, where structures belong to the usufructuary, creating legal complexities. The article reviews the Supreme Court rulings, highlighting a trend favoring the investors’ rights when the functional majority of a building is on their land. It concludes that legal reforms are needed to clarify ownership rules, particularly regarding perpetual usufruct, and to ensure market stability. Proposed amendments include changes to the Construction Law, the Land and Mortgage Registers Act, and the Civil Code to strengthen investor confidence and property rights.