Open vs closed escrow (rachunek powierniczy): what protects your money

Every developer agreement in Poland must come with a housing escrow account (mieszkaniowy rachunek powierniczy), and there are only two types. With an open escrow, the bank releases your money to the developer in stages as construction progresses; with a closed escrow, the bank keeps it until ownership of the flat has been transferred to you. Open escrow is backed by a wider safety net from the Developer Guarantee Fund (DFG) because the money is spent on the build before you own anything.

This article is information, not legal advice. It reflects the Developer Act of 2021 as in force in November 2026.

Only two types

Older guides sometimes describe a third option: a closed account combined with a bank guarantee or insurance. That variant belonged to the 2011 act, which the 2021 act replaced from 1 July 2022. Under the current law the developer must give you one of two protection measures: an open or a closed escrow.

	Open escrow (otwarty, OMRP)	Closed escrow (zamknięty, ZMRP)
When the developer gets your money	Stage by stage, after the bank checks each stage	In one payment, after ownership is transferred to you
Who checks progress	The bank, at the developer's cost	Not needed for releases
Last stage	Held until the bank receives the transfer deed extract	All money held until then
DFG contribution paid by the developer	0.45% of your payments	0.1% of your payments
DFG covers developer insolvency	Yes	Not needed for the money still at the bank
DFG covers escrow-bank failure above the deposit guarantee	Yes	Yes
Who finances the build	Partly buyers' payments, released by stage	The developer's own funds or bank loans until transfer

How an open escrow works

1. The contract contains a schedule of at least four stages, each worth 10–25% of the total cost.
2. When a stage is finished, the developer notifies you in writing or on another durable medium, and you pay the instalment for that stage into the escrow.
3. Before releasing money, the bank checks that the stage is complete. It also checks other conditions, such as the developer's title to the land, the building permit and the absence of insolvency.
4. The bank pays the developer no earlier than 30 days after the agreement is signed, and only in proportion to the cost of the completed stage.
5. The amount for the final stage stays in the account until the bank receives the extract of the deed transferring the flat to you, free of encumbrances other than those you accepted.

How a closed escrow works

You pay according to the schedule as with an open escrow, but the bank does not pass anything to the developer. It pays out only after it receives the extract of the transfer deed showing that the flat is yours and free of encumbrances. If you validly withdraw from the contract before that, your money is returned from the account.

Rules that apply to both

• You pay only into the escrow account named in your developer agreement, with the bank's name and account number.
• Escrow costs are the developer's and cannot reduce your payments.
• Your reservation fee, if you paid one, must be moved to the escrow within 7 days of signing the developer agreement.
• If the bank ends the escrow agreement, it may do so only for good cause and with 60 days' notice. The developer must find a new bank within 60 days; if it does not, the money goes back to buyers, and you may stop paying until you are told where to pay.

What the DFG is and what it pays

The Deweloperski Fundusz Gwarancyjny (Developer Guarantee Fund) is run by UFG, the Insurance Guarantee Fund. The developer pays contributions calculated on your payments. The act caps them at 1% for open and 0.1% for closed escrow; the rates actually in force are 0.45% and 0.1%. Whether the developer passes this on in the price is a commercial matter.

The DFG can refund buyers' payments:

• with an open escrow, when the developer becomes insolvent and the insolvency trustee refuses to continue the project or withdraws from the contract, and in similar insolvency scenarios;
• with an open escrow, when you validly withdraw on one of the grounds listed in the act and the developer does not repay you within 30 days;
• with either type, for amounts above the bank-deposit guarantee limit if the escrow bank fails.

UFG data reported in October 2026 showed that most payouts so far concerned developers missing the transfer date rather than bankruptcy. Whether the DFG covers a particular situation depends on the facts, so ask a lawyer if you think you may need it.

What is not covered

• A finished flat sold directly by the developer without a developer agreement: there is no escrow and no DFG.
• Payments outside the escrow: money you pay to another account, or in cash, does not get escrow protection. A reservation fee paid in cash before the developer agreement may not be covered by the DFG.
• Extras under a separate contract, such as a finishing package signed outside the developer agreement. Ask whether they are part of the developer agreement price.
• Your time and price risk: escrow protects money, not the flat or the date. If the project stalls, you may get your money back and still lose the flat you wanted at the price you agreed.

Which type is better for a buyer?

From a pure money-safety point of view, a closed escrow is simpler: the funds never reach the developer before you own the flat, so the developer's insolvency leaves them at the bank. An open escrow is still a protected structure: the bank releases money only against verified progress, it keeps the last stage, and the DFG adds a safety net. This comparison is an interpretation of how the rules work together, not a guarantee in a specific case.

The developer sets the escrow type for the project, and it is stated in the prospectus. It is one factor among several, alongside the developer's record, the land register and the permit. Our developer due-diligence playbook shows how to check all of them, and what a developer risk score can tell you explains how to read our score.

Myths to ignore

• "The DFG contribution is 1%." That is the legal ceiling for open escrow. The rate in force is 0.45%.
• "There is a 14-day cooling-off period." There is no general right to withdraw. Withdrawal is possible only on grounds listed in the act; see reservation and developer agreements.
• "Escrow means the flat is guaranteed." It protects payments, not completion.

Where escrow payments fit in the purchase is shown in buying from a developer step by step.

Check before you sign

1. The contract names the escrow type, the bank and the account number.
2. The schedule has at least four stages, each 10–25% of the cost.
3. The contract says how you will be notified that a stage is complete.
4. Everything you pay, including extras, goes through the escrow.
5. You will never pay to an account given by email or phone without checking it against the contract.