Buying an Apartment from a Developer and Developer Agreement: Escrow Account, DFG, Handover and Defects (2026)

Buying an apartment from a developer is usually the largest transaction of your life made… for a product that does not yet exist. The good news: since July 2022, you are protected by one of the strongest consumer laws in Europe – with escrow accounts, the Developer Guarantee Fund, a statutory handover procedure, and the right to refuse handover in case of significant defects. From 2025, developers must also publish prices – no more "price on request". This guide walks you through the entire process: from checking the developer, through the reservation and developer agreements, to the handover with a protocol, defects, and emergency situations – even when purchasing from abroad.

Last verification: July 20, 2026. Informational material – not legal advice. For specific transactions, consult the agreement with a lawyer; developer contract templates may vary, and case law is evolving.

In Brief

Before Signing Anything: Check the Developer

1. KRS and Finances

   Check the National Court Register (KRS) (free of charge) to see how long the company has existed, who manages it, its connections, and financial statements. A special purpose vehicle set up for a single investment is standard – thus, the history of the group and previous investments is all the more important.

2. Land Land and Mortgage Register

   On ekw.ms.gov.pl, check if the developer owns (or is a perpetual usufructuary of) the land and what mortgages are on it. A bank mortgage financing the project is standard – the key is the bank's consent for the unencumbered separation of your unit (you must receive the apartment free of third-party mortgages).

3. Information Prospectus – Read It Thoroughly

   The developer is obliged to deliver it to you free of charge, on a durable medium, before the reservation agreement (Article 21 of the Act) – and the prospectus becomes part of the agreement. You will find there: the legal status of the land, building permit, schedule, finishing standards, local plan arrangements for plots within 100 m and planned investments within 1 km (roads, railways, environmental decisions) – this is where you will learn about the bypass outside your window. Upon request, the developer must also show, among others, financial statements for the last 2 years (for a special purpose vehicle – also the parent company!) and the construction project (Article 26).

4. Compare Prices – They Are Transparent

   From July 11, 2025 (amendment Dz.U. 2025 poz. 758, Articles 19a–19b of the Act), every developer publishes on their website prices per m² and total prices for all offered units with a history of changes, and the data is updated daily on dane.gov.pl. A key safeguard: in case of a discrepancy between the published price and the proposed one, you can demand to enter into an agreement at the most favorable price (Article 19a, paragraph 6). From February 13, 2026, the price in the agreement must be directly the product of the area and the price per m² (Article 5a), and from 2027, a full DOM Portal with transaction prices will be launched.

5. Previous Investments and Reviews

   Visit completed developments by the developer, look for residents' reviews about defects and timeliness. Also, check if the company's contract templates have been listed in the register of prohibited clauses by UOKiK.

Reservation Agreement – First Binding Documents

• Executed in writing under penalty of nullity, for a specified period – when applying for a loan, the period must account for the bank's decision time (Articles 30–31 of the Act).
• Reservation fee maximum 1% of the price from the prospectus; after signing the developer agreement, it is credited to the price and must be transferred to the escrow account within 7 days (Article 32).
• Refund of the fee (Article 34): if the bank denies you a loan due to a negative assessment of your creditworthiness, if the developer does not fulfill the reservation agreement, or if they changed the prospectus without informing you. In two cases, the refund is doubled: if the developer fails to fulfill the obligation and if they did not remove defects from the handover protocol, and you did not proceed to the deed because of this.
• New from 2025: assignment of rights from the reservation agreement is invalid – except for transfers to immediate and extended family (Group I and II; Article 30, paragraphs 3–4). The end of trading "reservations".

Developer Agreement – What It Must Include and How It Protects You

• Form: notarial deed – the costs of fees and court charges are shared equally between you and the developer.
• Entry of claim into the land and mortgage register of the land: your right to transfer ownership is visible to everyone – it protects in case of land sale or enforcement.
• Mandatory content: price, area and layout of the unit, finishing standards, deadlines (completion of construction and transfer of ownership), payment schedule, conditions for withdrawal, contractual penalties. Provisions less favorable than the law are invalid – they are replaced by the law.
• Symmetry of penalties: interest reserved for the developer cannot exceed contractual penalties on your behalf; if the contract does not provide for penalties, in case of the developer's delay, you are entitled to compensation at the statutory interest rate (Article 39).
• Payment schedule linked to construction: the project is divided into at least 4 stages, and none can cost more than 25% or less than 10% of the total (Article 24, paragraph 2) – the developer cannot demand, for example, 80% of the price at the start.

Where Your Money Is: Escrow Account and DFG

The effect of the system: even in the event of developer or bank bankruptcy, you are not left with nothing – funds return from the account and from the DFG, and the trustee can continue construction under special buyer protection rules from the Bankruptcy Law.

Handover of the Apartment – Your Most Important Day

1. Come Prepared (and preferably not alone)

   You can bring a professional (engineer/inspector – cost a few hundred PLN). Bring: a level, measuring tape, socket tester, flashlight. Check the area, verticals, plaster, windows, ventilation, connections.

2. Record Every Defect in the Protocol

   The handover protocol is a statutory document – defects not recorded are harder to enforce later in this manner (the warranty remains).

3. Developer: 14 Days to Respond, 30 Days to Repair

   Within 14 days of signing the protocol, the developer must acknowledge the defects in writing or refuse with justification – silence means acknowledgment of defects (Article 41, paragraph 5). Acknowledged defects must be removed within 30 days from the protocol; if objectively they cannot meet the deadline, they indicate another deadline with justification. If that deadline also passes – you set your own deadline, and after it you remove the defects at the developer's expense.

4. Significant Defect? You Can Refuse Handover

   If the developer does not acknowledge a significant defect in the protocol, you can refuse the handover. The parties agree on a repeat handover; if you refuse again, within a month you apply for an opinion from a construction expert – confirmation of the defect gives you the right to withdraw from the agreement (the costs of the opinion are then borne by the developer). If the developer acknowledged the significant defect but did not remove it within the deadlines – you can also withdraw (Article 41, paragraphs 9–17).

5. Defects Revealed Later

   Defects identified between the handover and the transfer of ownership should be reported continuously – the 14/30-day deadlines run from the report (Article 41, paragraph 19). After the transfer of ownership, the warranty applies: 5 years from the delivery of the property (Article 568 of the Civil Code; from September 2025, the developer law directly refers to it in the new Article 41a).

When You Can Withdraw from the Agreement

• Defective agreement or prospectus (missing mandatory elements, non-delivery of the prospectus, discrepancies) – withdrawal within 30 days from signing the agreement (Article 43, paragraph 1, points 1–5).
• Developer does not transfer ownership on time – you set an additional 120 days, after which you can withdraw, retaining the right to a contractual penalty (point 6).
• Lack of the developer's bank consent for the unencumbered separation of the unit – 60 days from signing the agreement (point 8).
• Significant defect – acknowledged and not removed or confirmed by an expert (points 10–11); also when the trustee in bankruptcy requests the execution of the agreement (point 12).
• Form: written statement with notarized signature, with consent to delete your claim from the land register (Article 45) – without any fees for "withdrawal". The bank returns your funds from the escrow account, the developer the rest within 30 days, and if not – the DFG comes into play.
• The developer can withdraw only in case of your delay in payment (after written notice with a 30-day deadline) or non-appearance at the handover/deed despite two notices spaced at least 60 days apart.

Assignment of the Developer Agreement – Beware of Restrictions

Since 2023, trading "apartment agreements" is legally restricted (Article 37a of the developer act):

• Assignment to a person outside the family is only allowed if both: the agreement concerns no more than one unit and the assignor has not made another such assignment in the last 3 years.
• Exception without restrictions: transfer to a person from Group I or II (closer and extended family).
• Assignment requires a notarial deed, and the assignor submits a statement of meeting the conditions under criminal liability; however, violation of the restrictions does not invalidate the assignment itself.
• Rights from the reservation agreement cannot be assigned at all (invalid) – except for Group I/II.

Taxes and Costs

• VAT instead of PCC: the price from the developer includes VAT – 8% for apartments up to 150 m² and houses up to 300 m² (excess area proportionally 23%). You do not pay PCC 2%.
• Investor exception: when purchasing the sixth and subsequent units in one investment, you will pay PCC 6% alongside VAT (Article 7a of the PCC Act).
• Notary: developer agreement – costs shared equally; transfer of ownership agreement – according to the agreement (usually the buyer); entry of ownership into the land register 200 PLN, entry of mortgage (in case of a loan) 200 PLN + PCC 19 PLN.
• Full breakdown of taxes when purchasing: guide on PCC; loan for purchasing from a developer: guide on mortgage loans for the Polish diaspora.

Buying from Abroad

• Power of attorney: you can sign the reservation agreement remotely (written form), but the developer agreement and transfer of ownership are notarial acts – a power of attorney with notarized authorization (with apostille and translation if prepared abroad) is required. Details in guide on power of attorney from abroad.
• Payments of installments from abroad to the escrow account: without legal obstacles; prepare source of funds documents (AML) and monitor exchange rates for large transfers.
• Handover: you do not need to fly in – the protocol can be signed by a power of attorney with an inspector; ensure that the power of attorney covers handover activities and reporting defects.
• Acquisition moment for taxes: remember that the 5-year PIT countdown for future sales starts from the deed of transfer of ownership, not from the developer agreement.

Common Mistakes

• Payment of a "reservation fee" over 1% or without a written reservation agreement.
• Not checking the developer's bank consent for the unencumbered separation of the unit.
• Reading only the price list, not the prospectus – you will learn about the planned incinerator behind the fence from the prospectus, not from the brochure.
• Handover "in a hurry" without a professional and protocol without recorded defects.
• Signing the handover despite a significant defect – you lose your strongest card (refusal of handover).
• Inaction regarding deadlines – the 14/30 days for the developer and your deadlines for withdrawal are statutory; count them and document correspondence.
• Assignment of "reservation" without checking legal restrictions and tax implications.
• Confusing the developer agreement with the reservation agreement – only the first (notarial deed + entry of claim) truly binds the developer.

Frequently Asked Questions

Will my money be lost if the developer goes bankrupt?

The system is now airtight: funds are in the escrow account, and what the bank could not protect is covered by the Developer Guarantee Fund. Bankruptcy law also provides buyers with a special path to complete construction through the trustee.

I did not receive a loan. Will I get my reservation fee back?

Yes – the law mandates the refund of the reservation fee, among others, in case of a negative credit decision. Ensure that the reservation agreement is in writing and explicitly states this condition.

The developer raises the price "due to indexation". Can they?

Price change clauses must be clearly described in the agreement and prospectus, and provisions less favorable than the law are invalid; abusive indexation mechanisms are challenged by UOKiK. In practice: when faced with a price increase, demand a contractual basis and consider legal advice – and if there is no agreement to change, check the withdrawal conditions in the agreement.

What is a significant defect?

A defect that prevents normal use of the unit or makes it inconsistent with the agreement in a key respect (e.g., severe flooding, lack of ventilation, significantly smaller area). In case of a significant defect, you can refuse the handover – the dispute is resolved through a procedure involving a construction expert.

I am buying from the USA. Can I handle everything without flying in?

Yes: reservation remotely, developer agreement and final deed through a power of attorney, handover by a power of attorney with an inspector, payments via bank transfer to the escrow account. One trip for the handover is helpful – but not necessary.

What is the difference between a developer agreement and a preliminary agreement before a notary?

The developer agreement pertains to a unit that is being built – and activates the entire protective framework of the law (escrow account, DFG, prospectus, statutory handover). The preliminary agreement usually concerns a finished property, and these mechanisms do not exist. A ready, separated apartment from a developer is often purchased with a preliminary + sales agreement – in this case, the content of the agreement is crucial, not the developer law.

Fact-Check Summary

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