Polish cabinet adopts bill on reverse mortgage
May 2, 2014
Poland's cabinet adopted a draft law on reverse mortgage, which will be offered by banks and lenders under the oversight of financial market regulator KNF, the government's press office wrote in a press release following the cabinet sitting.
The solution is addressed mainly to the elderly but the legislator sets no particular age limit, the statement reads.
The credit will be granted in the currency in which its beneficiary receives the bulk of their income.
Under the proposed legislation, banks or other eligible institutions signing a reverse mortgage agreement with a property owner will oblige themselves to pay out a defined sum at once or over a fixed period of time in exchange for the title to property, a part of property, perpetual usufruct right or a cooperative property right, the statement reads. The institutions will obtain the title after the owner's death.
At the same time, the heirs of the owner will have the right to pay back the reverse mortgage and retain the right to the property, the bill stipulates.