Does safe credit = safe purchase?

Buying a flat occupies one of the highest places at the top of Poles’ dreams. July 1 In 2018, the Safe Credit 2% program entered into force, which will make it easier for many people to realize this dream. However, the Polish Association of Developers draws attention to the elements accompanying safe purchases of real estate, which are worth mentioning in the event of an increased demand for apartments.

Over the last decade, developers have built over a million apartments, thus fulfilling the dreams of hundreds of thousands of families of their own apartment. Among the huge number of satisfied customers, there will certainly be a handful of those who have failed in a clash with a dishonest entity.

In order to protect customers from possible unfair practices, the Association initiated the Safe Purchase campaign a few months ago, which was joined by member companies of the organization. And it’s worth remembering now. Its aim is to promote good practices in the field of real estate sales and to educate buyers of flats.

“We are changing Poland not only visually, but we also care about the education of apartment buyers. It is important to us to prevent any practices that could lead to the detriment of apartment buyers or improper information about essential elements of real estate purchase. An educated customer is a partner in the conversation and we care about such people,” says Konrad Płochocki, vice-president of the Polish Association of Developers. Płochocki adds that the credibility of the associated companies is important to the Association, and thus ensuring peace of mind for buyers of apartments. For this purpose, the Safe Purchase campaign was created.

A housing escrow account, a notary public – guarantors of transaction security

In 2012, regulations protecting clients of real estate developers entered into force. Thanks to them, a housing escrow account must be kept for each development investment. It is to him, and not directly to the developer, that the client’s money goes first. The bank transfers them to the builder only when they are? certain conditions are met, and the developer cannot use the buyers’ money for purposes other than the implementation of the project.

An important issue is also the contract between the client and the developer, which is valid only when it is concluded in the presence of a notary public. No other form is legally permitted. In order for the client to be sure that he is giving his money into honest hands, the development agreement must be drawn up in the form of a notarial deed, and the notary public is obliged to check whether it contains, for example, prohibited clauses.

How not to be deceived?

How can you be sure that the selected development company is honest? Just check if the sales office is marked with a Safe Purchase sticker. In addition to the sticker, the Union has prepared an information folder for apartment buyers. It contains all the most important issues regarding the safe purchase of real estate, such as the fact that an integral part of the development agreement is the prospectus. Not everyone knows that the developer is obliged to hand over such a document to the person interested in concluding the development agreement, even without an explicit request on his part. The prospectus should contain data on the implemented project, as well as investments planned in its vicinity or vicinity, such as sewage treatment plants, landfills or roads. The information prospectus is also a collection of information about the developer’s market history. The future buyer will then learn, among other things: about the company’s investments.

It is also worth verifying whether the development company belongs to the Polish Association of Developers – an organization standing, among others, on upholding the ethical standards of the development industry

From the Safe Purchase folder, the customer will find out when both he and the developer can legally withdraw from the development contract and what will happen in the event of the developer’s bankruptcy.

“Marking points of sale with a special >>safe<< sticker, as well as disseminating the educational folder, has one, most important goal: to constantly raise the social awareness of Poles about the purchase of their dream apartment. Because in the rush and euphoria associated with the possibility of buying real estate, it is easy to lose your cool,” concludes Konrad Płochocki.

The Polish Association of Developers is the largest and most influential organization in the development industry, representing the interests of development companies in Poland and the European Union since 2002. It undertakes actions to create good law, improve the conditions for investing in the real estate market, professional development of employees of member companies and improve the image of the industry. It brings together about 300 companies from all over the country, representing the entire cross-section of the market – both small family businesses and international corporations, covering the residential and commercial markets. He is a member of Build Europe, an organization representing the interests of the real estate market before the European Commission, European Parliament and other EU institutions. It constantly cooperates with state and local government authorities, expert organizations, lawyers, financiers, architects, urban planners and broadly understood business, which has a significant impact on the situation of the industry in Poland.

Source of information: Polish Association of Developers