The anti-development act
ResidentialAn act designed to protect Polish home buyers comes onto the statute book in the spring. The so-called "Development Act" results from a constitutional tribunal ruling in August 2010 that found that the interests of property buyers in Poland were insufficiently protected. Government agencies have been obliged to draft a new law to resolve the issue.
New law, old practicesThe act might be problematic for many developers, but not for all of them. Eco Classic introduced the option of concluding preliminary agreements in the form of notarial deeds back in 1995. In 2011 the company introduced escrow accounts into which home buyers could make payments. But not everyone has adopted such practices. Still, the new Law on the Protection of Purchasers of Apartments or a Detached Houses will change the residential market when it comes into force on April 29th. For the better? We shall have to wait and see. The name of the act is slightly unfortunate, since its aim is to protect clients when developers go bankrupt. Its provisions will also make developers' lives difficult. "A lot of inexperienced companies appeared during the bull market. They wanted to take advantage of the market capacity. Unfortunately, some of them turned out not to be viable. The crisis made it impossible for them to finish their projects. Consequently the reputation of t
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