The Act of 20 May 2021 on the protection of the rights of the purchaser of residential premises or a detached house and the Developer Guarantee Fund (Journal of Laws 2021, item 1177) (hereinafter: the ‘New Developer Act’) entered into force on 1 July 2022. Given the seriousness of the changes introduced by the legislator, it seems crucial to determine on what terms the existing development intentions should be carried out. Previously, the Act of 16 September 2016 on the Protection of the Rights of the Buyer of a Residential Premises or a Detached House (Journal of Laws 2011 No. 232 item 1377) (hereinafter: the ‘Old Development Act’) was in force.
Pursuant to the wording of Article 76(1) of the transitional provisions of the New Development Act, the provisions of the Old Development Act shall apply in the period of 2 years after the New Development Act enters into force, i.e. until 1 July 2024, in the event of (cumulative conditions):
(i) the commencement of the procedure for the sale of residential premises,
(ii) conclusion of at least one development agreement,
before 1 July 2022. In practice, the conclusion of a development agreement under the regime of the Old Development Act shall establish the legal status for all legal actions within a given development project.
*This does not exempt the developer from the appropriate application of the provisions of the New Development Act during the transitional period to the extent indicated enumeratively in Article 76 of the New Development Act.
Warsaw, 3 September 2022