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Buying a new-build apartment from a developer happens in a few distinct stages, and the paperwork matters more than the price per square metre. Here is the whole process as it works in Warsaw, from vetting the developer to collecting your keys.
Step 1. Check the developer and the project
Before you pay a reservation fee, gather the basics about the company and the scheme.
- KRS record and company history. Look up the company in the National Court Register: when it was founded, who runs it and whether the project sits in a special-purpose vehicle. That is common and perfectly legal, so simply ask about the financial backing of the wider group.
- Land and mortgage register. It should show the developer as owner or perpetual usufructuary and contain no surprising encumbrances. Read sections III and IV.
- Building permit and the real state of construction.
- Previous projects. Visit completed estates and talk to residents.
The information prospectus
Before you sign anything, the developer must hand you an information prospectus (prospekt informacyjny) with its attachments. It covers the land, the finishing standard, the completion date and how your payments are protected. Read it carefully and compare it with what the sales agent tells you.
The escrow account
Your payments go to a housing escrow account (mieszkaniowy rachunek powierniczy), either open or closed, run by a bank. The developer receives funds in stages, once the bank confirms that the relevant work is done. Check which type your contract uses and how the bank supervises it, because your money's safety depends on it. Buyers are also covered by the Developer Guarantee Fund.
Ask for every document in writing. A reputable developer will not mind, and a good adviser will help you read them.
Step 2. The reservation agreement
A reservation agreement holds the chosen apartment for a set period, usually from a few days to a couple of weeks, until the developer agreement is signed. By law the reservation fee is capped at 1% of the price, and it should be returned if the developer agreement falls through for reasons beyond your control. Pay attention to the reservation period and refund terms, as they differ between projects.
Step 3. The developer agreement at the notary
The developer agreement (umowa deweloperska) must be a notarial deed. Check in particular:
- the exact description of the unit, its area and appurtenances (balcony, storage room, parking space),
- the price, payment schedule and escrow account number,
- the dates for transfer of ownership and for handover,
- the finishing standard and the rules for changes,
- contractual penalties and the conditions for withdrawing from the contract.
Ask for the draft several days before the notary appointment and have a lawyer look at it.
Step 4. The payment schedule
You do not pay the price in one go. A typical pattern looks like this, with the exact split set by your contract:
| Stage | What happens | Payment |
|---|---|---|
| Reservation | The unit is held | Reservation fee (credited towards the price) |
| Developer agreement | Signed at the notary | First instalment, often your own contribution |
| Construction stages | Milestones completed | Further instalments into the escrow account |
| Handover | Acceptance protocol | Final instalment, often after handover |
| Transfer agreement | Notarial deed | Ownership entered in the land and mortgage register |
If you have a mortgage, the bank releases funds in tranches tied to this same schedule.
Step 5. Handover
The developer gives you notice of the handover date. Come with a checklist, a measuring tool or a trusted inspector. Check walls, windows, installations, floor area and conformity with the contract. Record every defect in the protocol, and the developer has to respond to each one. Sign the protocol and take the keys only once defects are fixed or a repair date is agreed.
The transfer agreement
The final notarial deed transfers ownership to you, and the notary files the application to enter you in the land and mortgage register. From that point you are the owner.
What does it all cost?
Besides the price you should budget for notary fees, court fees, mortgage costs and a parking space.
One last thing
Laws and bank practice change, so treat this as a guide, not legal advice. If you would like to go through the process with someone who knows Warsaw's developments, write to M² Homes.