Buying Off-Plan Property in Poland: Buyer Protection Explained

Buying off-plan property in Poland means purchasing a residential unit or a single-family house from a developer before construction has been completed and before ownership can be transferred to the buyer. Where the transaction falls within its scope, it is primarily governed by the Act of 20 May 2021 on the Protection of the Rights of the Purchaser of a Residential Unit or a Single-Family House and the Developer Guarantee Fund, commonly called the Developer Act [1].

The legal framework is designed to reduce the risk that a buyer pays for a property that is delayed, defective or not delivered because of the developer’s financial problems. However, statutory protection does not replace legal due diligence. The wording of the developer agreement, payment schedule, prospectus and technical documentation remains commercially important.

Lawyersinpoland.com by Kopeć & Zaborowski supports foreign investors and private buyers in assessing transaction structures, contractual risks and regulatory requirements connected with investment in Polish real estate.

Developer agreement in Poland: the key contract for an off-plan buyer

A developer agreement is a contract under which the developer undertakes to establish and transfer ownership of a specified apartment or house after construction is completed, while the buyer undertakes to pay the agreed price. Its mandatory content is listed in Article 35 of the Developer Act, and under Article 40 it must be concluded in the form of a notarial deed; the core rules are set out in Articles 35 to 42 [1]. Contractual provisions that are less favourable to the buyer than the Act are void and replaced by the statutory rules (Article 42) [1].

The buyer’s claim for transfer of ownership should be entered in the land and mortgage register, and the developer agreement itself constitutes the basis for that entry (Article 38) [1]. This entry is significant because it gives the buyer stronger protection if the property is sold again, encumbered or becomes part of insolvency proceedings.

Before signing, the buyer should verify whether the agreement accurately identifies:

• the land and land and mortgage register number;
• the planned unit, usable floor area, layout and appurtenant premises;
• the total price, VAT treatment and payment instalments;
• the completion date and the planned ownership transfer date;
• contractual penalties for delay;
• the standards of construction and finishing works;
• the procedure for reporting defects and arranging handover.

For a foreign buyer, it is also necessary to assess whether a permit to acquire real estate is required. The general rules are set out in the Act of 24 March 1920 on the Acquisition of Real Estate by Foreigners, and permits are issued by the minister responsible for internal affairs. Acquiring a separate residential unit is generally exempt from the permit requirement under Article 8(1)(1) of that Act, although under Article 8(3) this exemption does not apply to property located in the border zone. Citizens and entrepreneurs of EEA states and Switzerland are, with limited exceptions, exempt under Article 8(2). By contrast, a buyer from outside the EEA purchasing a single-family house together with its land will usually need a permit unless another exemption applies. An acquisition made without a required permit is void, so the structure of the transaction must be reviewed individually before signing [2].

Developer escrow accounts in Poland: where does the buyer’s money go?

For transactions covered by the Developer Act, payments made by an off-plan buyer must be made to a housing escrow account rather than directly to the developer’s ordinary operating account. Under Articles 6 to 8 of the Developer Act, the developer must provide an open or closed housing escrow account for the project, and the buyer makes payments into that account in line with the progress of the works [1].

Polish law provides for two principal forms of escrow protection:

• an open housing escrow account, from which the bank releases funds in stages as construction progresses;
• a closed housing escrow account, from which funds are released only after the bank receives an extract of the notarial deed transferring the rights covered by the developer agreement to the buyer, free of encumbrances other than those accepted by the buyer (Article 15) [1].

In the case of an open account, the bank verifies whether the construction stage stated in the payment schedule has actually been completed before releasing funds. This reduces, but does not eliminate, project risk. A closed account generally offers stronger payment protection, although it may affect the developer’s financing model and the commercial terms offered to buyers.

The buyer should confirm the type of account, the bank maintaining it and the rules for releasing funds. Payments outside the statutory escrow structure require careful review, particularly where they are described as advance payments, booking fees or contributions to construction costs.

The Developer Guarantee Fund (DFG) and buyer rights if a developer goes bankrupt in Poland

The Developer Guarantee Fund, or DFG, is a statutory protection mechanism administered by the Insurance Guarantee Fund (UFG) and financed by developer contributions. Contributions are calculated on each payment made into the escrow account, at rates set by regulation and capped by statute at 1% for open accounts and 0.1% for closed accounts (Article 49). The DFG supplements the protection provided by housing escrow accounts and covers the return of payments made by buyers in cases specified in Article 48 of the Developer Act, including certain events connected with the developer’s bankruptcy, the insolvency of the bank maintaining the escrow account and the buyer’s statutory withdrawal from the agreement [1].

The DFG does not mean that every commercial problem will automatically result in immediate payment to the buyer. The statutory procedure, the type of escrow account, the stage of the project and the formal insolvency or project-continuation process matter. Delays may still generate substantial costs, including lost financing, rental expenditure and reputational consequences for investors acting through companies.

Three practical exceptions should be kept in mind. First, DFG protection does not remove the need to verify the developer’s title to the land and financing arrangements. Second, it does not guarantee that construction will be completed on the original timetable. Third, it does not cure contractual provisions that improperly shift non-statutory costs or risks to the buyer; such provisions have to be identified and challenged under the contract and the Act.

Reservation agreements for new-build property in Poland: what protection do they provide?

A reservation agreement may be signed before the developer agreement. Under Articles 29 to 34 of the Developer Act, it must be concluded in writing under pain of nullity and should identify, among other things, the property, its price, the reservation period and the reservation fee [1]. Under Article 32(2), the fee may not exceed 1% of the price of the property stated in the prospectus.

The reservation fee is not automatically non-refundable. Article 34 provides for return of the fee in specified circumstances, including where the buyer does not obtain mortgage financing due to a negative creditworthiness assessment, provided that the statutory conditions are met. Where the developer fails to perform its obligations under the reservation agreement, the buyer is entitled to repayment of double the reservation fee [1].

Since 11 July 2025, developers must publish on their own website the price per square metre of usable floor area and the total price of each unit offered, the prices of appurtenant premises and other payments due from the buyer, including VAT, together with a dated history of price changes; developers already selling on that date had until 11 September 2025 to comply. If the price offered at signing differs from the published price, the buyer may demand that the contract be concluded at the price most favourable to them [3]. For developer and reservation agreements concluded from 13 February 2026, the price must be stated as the usable floor area, calculated under the applicable Polish Standard, multiplied by the price per square metre (Article 5a) [1].

The reservation agreement should not be treated as a substitute for reviewing the prospectus and the final notarial deed. It primarily secures a period during which the developer should not offer the particular unit to another buyer.

Handover and defects in a new apartment in Poland

Handover is a separate stage from ownership transfer. It takes place after the occupancy permit becomes final (or, for a single-family house, after notification of completion without objection), and the parties prepare a protocol recording visible defects, incomplete works and reservations. Article 41 of the Developer Act regulates the handover procedure and the developer’s obligation to respond to defects reported in the handover protocol [1].

The buyer should inspect the property carefully, preferably with a technical specialist where the unit is purchased for investment or has a high value. Defects should be described precisely, supported by photographs and linked to the technical specification where possible.

The developer must provide the buyer, within 14 days of signing the handover protocol, with a statement acknowledging the reported defects or refusing to acknowledge them, stating the reasons for refusal. If the developer does not respond within that period, the defects are deemed acknowledged. Acknowledged defects must generally be removed within 30 days of signing the protocol. If removal within that period is impossible despite due diligence, the developer must state the reason and specify another appropriate deadline; if that deadline is also missed, the buyer may set a final deadline and then have the defects removed at the developer’s expense. Where a material defect is found and the developer refuses to acknowledge it, the buyer may refuse handover [1]. Failure to follow the statutory procedure may materially strengthen the buyer’s position, but the appropriate remedy depends on the facts and contractual documentation.

After ownership has been transferred, the Civil Code rules on warranty for defects (rękojmia) apply to the developer’s liability, as expressly confirmed by Article 41a of the Developer Act, in force since 9 September 2025 [1]. For real estate, the seller is liable under the warranty if a physical defect is discovered within five years of delivery [4].

Further changes are under discussion. A government draft amendment to the Developer Act published in spring 2026 proposes, among other things, a ban on increasing the price after the agreement is signed, a higher refund of the reservation fee where the developer is at fault and changes to the handover procedure. At the time of writing, the draft had not been enacted, so buyers should check the current legal position before signing.

This is informational material, not legal advice. Before paying a reservation fee or signing a notarial deed, foreign buyers should obtain transaction-specific advice on title, permits, tax and contractual exposure. For a focused review of a developer agreement and buyer-protection documents before committing funds, contact the Kopeć & Zaborowski legal team.

FAQ – Buying Off-Plan Property in Poland

Is an escrow account mandatory when buying off-plan property in Poland?

For transactions covered by the Developer Act, the developer must use a housing escrow account. The account may be open or closed, with different rules for releasing the buyer’s payments.

Can a foreigner buy a new apartment in Poland?

In many cases, yes. A separate residential unit is generally exempt from the permit requirement under Article 8(1)(1) of the Act on the Acquisition of Real Estate by Foreigners (except in the border zone), and EEA and Swiss nationals are generally exempt. A non-EEA buyer of a single-family house with land will usually need a permit from the minister responsible for internal affairs. The legal status of the land, garage spaces and the buyer’s nationality should therefore be checked.

What is the maximum reservation fee for a new-build apartment?

Under Article 32(2) of the Developer Act, the reservation fee cannot exceed 1% of the price of the property stated in the prospectus.

What happens if the developer becomes bankrupt?

The buyer’s position depends on the escrow account, the land and mortgage register entry, the stage of the project and the statutory DFG procedure. The Developer Act and insolvency rules provide protection, but the outcome requires an individual legal assessment.

Can a buyer report defects after handover?

Yes. Defects should be recorded in the handover protocol whenever possible. The Developer Act’s 14-day response procedure and 30-day removal period apply to defects reported in that protocol and also to defects discovered and reported between handover and the transfer of ownership, with the deadlines running from the date of reporting. Defects discovered after the transfer may give rise to warranty claims under the Civil Code, which apply to developers under Article 41a of the Developer Act; for real estate, the warranty period is five years from delivery [4].

Does a reservation agreement guarantee that the buyer will acquire the property?

No. It reserves the property for a defined period, but ownership is acquired only after the relevant transfer agreement is executed and, where required, the relevant entry is made in the land and mortgage register.

Bibliography

[1] Act of 20 May 2021 on the Protection of the Rights of the Purchaser of a Residential Unit or a Single-Family House and the Developer Guarantee Fund, consolidated text: Journal of Laws of 2026, item 880.

[2] Act of 24 March 1920 on the Acquisition of Real Estate by Foreigners, consolidated text: Journal of Laws of 2017, item 2278, as amended.

[3] Act of 21 May 2025 amending the Act on the Protection of the Rights of the Purchaser of a Residential Unit or a Single-Family House and the Developer Guarantee Fund, Journal of Laws of 2025, item 758.

[4] Polish Civil Code of 23 April 1964, consolidated text: Journal of Laws of 2026, item 795.