Changes in development act in Poland: apartment accounts with guarantees.
The amendment of the regulations of apartment and house buyers rights (called Development Act), which should have positive effect on the properry buyers is soon to be introduced to the public.
The Office of Competition and Consumer Protection, responsible for new regulations, predicts that the changes will apply in the first half of this year. One of the most important changes proposed is the shutdown of development fiduciary accounts, which do not have the additional insurances or bank guarantees (80-90% developers are using them nowadays).
People who decide to buy apartments, put their fund into these accounts and banks give it to developers according to the schedules, which unfortunately is not linked to the progress of the construction project.
The UOKiK wants the payments to be connected to the level of the investment progress. In theory, the fund will be put into closed fiduciary accounts and developers will get the fund after property handover, or open accounts with insurance or bank guarantee.
Buyers can get their fund back in case developers go bankruptcy. It also emphasised that buyers would be under protection. At the moment it only applies to people purchasing new apartments and garages.
According to UOKiK proposal, the same rights should be given to the people who purchas already built premises and protect their investment as well.