The new development bill introduced by the development guarantee fund (hereinafter DFG) is a revolution in the real estate market. Thanks to it, buyers are expected to recover all of the funds invested, even if the developer or bank holding the trust accounts will fail. What do you need to know about a new solution?
The new shape of development market law was developed by UOKiK. The Office for Competition and Consumer Protection concluded that buyers need protection against loss of funds from a developer or bank. The DFG is also intended to protect if the developer delays the transfer of ownership or when the premises have a significant disadvantage that the developer will not want to remove.
The operation of DFG describes the chapter 8 Acts of the day 20 May 2021 on the protection of the rights of the buyer of the residential or single-family house and the Developer Guarantee Fund. It is by definition included here in a separate account in the Insurance Guarantee Fund.
The measures on it are intended to come from:
- 1) from contributions due from developers, as set out in the Act;
- 2) interest on the cash collected in the bank account referred to in section 1, and the proceeds of investments in the Fund;
- 3) of claims referred to in Article 48(8); Journal of Sets – 17 – item 1177
- 4) the proceeds due to the satisfaction of the bankruptcy in the event of the bankruptcy of the developer;
- 5) from the funds obtained by the Insurance Guarantee Fund from loans and loans to the Fund;
- 6) from other influences (set by parties).
New regulations apply from 1 July 2022 They concern all new investments and investments that are in progress. The new law will not apply to projects whose sale started before 1 July 2022 and for which at least one development agreement.