REGULATION ON THE PROTECTION OF THE RIGHTS OF BUYERS OF RESIDENTIAL PREMISES OR ONE-FAMILY HOUSING UNITS
April 29, 2012 saw a new Regulation concerning the Protection of the Rights of Buyers of Residential Premises or One-family Housing Units enter into force (Regulation of September 16, 2011; Dz. U. 2011 no. 232). This Act constitutes an attempt to regulate the legal relationship between developers and buyers (natural persons) by introducing standard obligatory provisions that, in principle, aim to grant buyers improved rights and guarantees.
The Act clearly appears to be oriented towards the protection of consumers since, first of all, it secures buyers’ advance payments. Providing such security may boost the confidence and interest of buyers in housing development projects. It may however lead to a rise in the costs of development, above all in the case of smaller developers who, until now, were able to finance housing development projects with the down payments of their customers. Now, however, they must seek additional sources of funding.
1. CONTENT OF THE ACT 2. SECURITY MEASURES REQUIRED OF DEVELOPERS 3. INFORMATION MEMORANDUM 4. DEVELOPMENT AGREEMENT 5. PENAL SANCTIONS AND PROVISIONS 6. BANKRUPTCY