Reservation of apartment in Poland – new law
Reservation agreement – what is it?
A reservation agreement contains the developer’s commitment to exclude a given flat or house from the offer for a certain period of time, in exchange for the payment of a certain fee by an interested future buyer. As of 1 July 2022, with the entry into force of the new Developers Act of Poland, such an agreement will cease to be an unnamed agreement and its provisions will be regulated by specific provisions. A written form will be required for the conclusion of the agreement under pain of nullity.
Content of the property reservation agreement
The content of the reservation agreement will indicate the parties to the agreement, the place and date of its conclusion, as well as the price of the reserved flat or house, the amount of the reservation fee, if the parties provided for it in the agreement, and the period for which the given flat or house will be excluded from the developer’s offer. The contract will also specify the location of the flat in the building, its area and the layout of the premises.
Reservation fee – limitations
The new law will also end arbitrariness in determining the amount of the reservation fee for a flat or house. Its amount will not exceed 1% of the price. In addition, the developer will be obliged to return the fee if he fails to obtain funds for the purchase of the house (for example, in the case of a refusal to grant a loan). If, however, the developer himself contributes to the breach of the reservation agreement, he will have to return twice the reservation fee. The reservation fee is to be credited towards the purchase price of the property. The Developers Act also protects the developer’s interests; if the sale is not completed due to the buyer choosing a competitive offer, the reservation fee will be retained by the developer.