Currently, many countries are facing numerous consequences caused by the Global Health Emergency resulting from the spread of COVID-19 and announced by World Health Organization (WHO). While the current global market situation is in some turmoil and questions are being raised regarding the future of the real estate market, one may wonder how this situation impacts signed, but not-yet-completed, transactions. The same questions are being asked when looking towards transactions to be negotiated in the near future.
In this newsletter we present some clauses customarily contained in transaction documents and, consequently, their potential impact on real estate transactions in the light of the current COVID-19 situation. These clauses can be found in all types of Polish real estate documents, particularly in preliminary sale agreements ("PSPA") whereby parties undertake to execute final a sale that subject to fulfillment of certain conditions precedent. A detailed analysis of these clauses may be helpful for parties in order to evaluate the extent and risks related to failure of a transaction and possible options to enforce or walk away from a deal.
In order to learn more, please open the attached file.