Customers buying real estate in the primary market enjoy better protection. Such is the conclusion of UOKiK’s review of legal regulations that have been in effect for nearly two years now. Nevertheless, an amendment to the Act in force is required

29 April 2012 saw the entry into force of the Act on the protection of the rights of residential premises or detached house buyers. Its main objective was to reduce the risk borne by consumers when purchasing a house or an apartment in the primary market. After the Act in question had been in effect for nearly two years, UOKiK presented its conclusions from the analysis of the new law’s practical implications. A  comprehensive market test has been conducted, in the framework of which  nearly 1,000 entities - developers, housing co-operatives and banks -  were asked to provide their assessment of the regulations in force, the impact thereof on their business activity, as well as their opinion on  the need for and the scope of potential modifications to the Act. In February this year the Office presented also the Report on the assessment of contract templates used by developers while trading with consumers.

The Office’s observations, as well as information collected from entrepreneurs, indicate that the primary objective of the new Act has been obtained, as that the level of protection offered to the buyers has increased. The above is also confirmed by the dropping number of complaints against developers that UOKiK has been receiving, as well as a decrease in number of proceedings, resulting from these complaints, related to the violation of consumers' collective interests conducted by the Office. A growing number of investment projects that are not fully financed with the use of the buyers’ money is another of the positive changes observed.

Legislative changes proposed

Despite the overall  positive assessment of  the Act in force , the Office has identified a need to modify the applicable legal regulations in order to provide even better protection for consumers, and to secure the interests of entrepreneurs. Many of UOKiK’s conclusions are identical to the changes proposed by the professional market players.

Reservation agreement

The need to provide legally for reservation agreements may serve as a good example of the changes required. Such agreements are concluded between the developer and the buyer, and provide for an exclusion  of a given apartment or house from the sale market for a specific time period. For some banks, they serve as a document that is sufficient to assess the consumer’s credit application. Both - entrepreneurs and UOKiK - are of the opinion that it is necessary to define this type of contracts and to include them in the Act that protects the rights of residential premises’ buyers.

Pre-contractual obligations

The Office agrees also with the postulate to oblige developers to provide more precise information in their prospectus. Consumers would have to be informed, inter alia, about other investment projects planned within a 1 kilometer radius from the property in question. The change proposed would consist in providing a more precise catalog of documents that serve as a source of information stated in the prospectus.

Acceptance of the apartment

In order to offer even better protection of customers buying apartments in the primary market, an amendment has been proposed that would allow the consumers to refuse to accept their property. Such a right would be enjoyed in a case in which the property in question displays significant defects. Acceptance could be suspended until the defects are eliminated by the developer.

Public and intergovernmental consultations

These are just some of the amendments proposed by UOKiK. They are presented in the Draft information of the Council of Ministers for the Sejm, concerning implications of the Act’s application, along with the amendments proposed. The document has been subjected to public and intergovernmental consultations. All those interested in the topic may find the document on UOKiK’s website.

Additional information for the media:
Małgorzata Cieloch, Spokesperson for UOKiK
Department of International Relations and Communication
Pl. Powstańców Warszawy 1, 00-950 Warszawa
Phone: +48 22 827 28 92, 55 60 314
Fax +48 22 826 11 86
E-mail: [SCODE]bWFsZ29yemF0YS5jaWVsb2NoQHVva2lrLmdvdi5wbA==[ECODE]