Prohibited Contractual Provisions in Developer Contracts of Cracow Housing Investments

Stanis³aw Belniak and Magdalena Go³aœ-Podolec
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Stanis³aw Belniak: Cracow University of Economics, Department of Real Estate and Investment Economics
Magdalena Go³aœ-Podolec: INTER-BUD DEVELOPER sp. z o.o.

World of Real Estate Journal (Swiat Nieruchomosci), 2014, issue 90, 13-18

Abstract: The developer contract is the instrument for the allocation of risk in the primary housing market. The need to involve considerable financial resources on the side of the developer, the uncertainty with regard to the finalization of the investment process and the transfer of ownership of the property to the buyer, are only some of several factors that determine the need for precise regulation of contractual mutual obligations of the developer and the buyer. In view of the dynamic development of residential projects in recent years, not uncommonly becomes a phenomenon of fraudulent behavior in the mutual obligations of the parties of the developer contract with regard to concluding in it’s content the so-called prohibited contractual provisions called “abusive clauses” which results in significant consequences of an economic nature. These consequences must be considered at several levels . The effects of the developer agreements are both individual and then to be considered with regard to the analysis of quantifiable losses that the buyer has suffered concluding such an agreement covering the records belonging to the catalog of unfair contractual terms, as well as general, which allows for a broader assessment of the scale of the phenomenon, and as a go - evaluation of risks associated with the purchase of residential property within the primary market and the impact of such improper practices established on the opportunities and the quality of its‘ further development. It should also be emphasized that the housing market is a key area of development activity in Poland.

Keywords: law; real estate; prohibited contractual provisions; developer housing investments; developer contract (search for similar items in EconPapers)
JEL-codes: K12 (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:kra:journl:y:2014:i:90:p:13-18

DOI: 10.14659/worej.2014.90.02

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