On the legitimacy of restoring the institution of an annuity right in rem on real estate

Abstract

The article presents the basic solutions to be applied in the so-called annuity real rights. These are limited real rights (iura in rem), which permit obtaining certain revenues from real property on a regular basis. Their essential purpose is to secure specified periodical benefits, primarily those of a pecuniary nature. These rights show some similarities, on the one hand, to pledge-type rights (especially mortgage) and, on the other hand, to easements. Currently, no annuity real charges of any kind have been regulated under the Polish civil law (since the entry of the Civil Code into force in 1965), as they were perceived, albeit incorrectly, as a reminiscence of the epoch of feudalism. However, they are still popular in other European civil law legislations, for example in the German, Swiss, Austrian, Spanish, Czech, Estonian, Slovenian or Croatian laws. The prototype for this category of rights is the real burden (German: Reallast). This paper presents various solutions for the latter institution as well as related institutions, such as the Swiss “annuity letter” (German: Gült, French: lettre de rente) and the German annuity land charge (German: Rentengrundschuld). Different concepts for the legal nature of the annuity rights have been presented, in particular the German real burden, which formed the basis for proposals of solutions in the work of the Polish Civil Law Codification Committee at the beginning of the 21st century. The potential usefulness of the real burden rights indicated in this article confirms the legitimacy of introducing this type of legal institution into the Polish law.