High prices per square meter, relatively low availability of interesting premises, low creditworthiness and many others. This is just the beginning of the problems that people who want to buy a flat have to face. Even if you manage to sign a contract with the developer, it is worth checking whether there is a certain provision in it. Ultimately, it may turn out that despite the initial arrangements, you will pay even much more for the acceptance of the flat.
What to look for in a developer contract? Check this provision
Inflation clauses are a provision that has been gaining popularity recently. The reasons for this state of affairs include the rising costs associated with the purchase of building materials or the employment of specialists. Their aim is to protect developers from incurring these increases by passing them on to buyers. If your contract contains such a clause, it could mean you pay significantly more at final settlement.
What to look for in a contract with a developer? What to look for in a developer contract? Photo: pexels.com / pixabay.com
What is the inflation clause? Be careful, you could end up paying more
The application of the inflation clause is intended to protect interests, but at the same time it may discourage a potential buyer of an apartment from signing a contract. After all, nobody wants to buy a pig in a poke, the price of which may turn out to be higher than originally assumed. Especially since the housing situation in Poland is difficult even without it, and in an era of rising costs, few people can afford an uncertain purchase. Just collecting the down payment or arranging a loan can be a huge challenge. Therefore, if you are planning to sign a contract with a developer, review it carefully or even consult a specialist in these matters (e.g. a lawyer), so that you do not encounter an unpleasant surprise later.
Depending on the contract and developer, the inflation clause can be different and somewhat flexible. While some leave themselves a lot of leeway in terms of changing the price, others provide a range that they are required to stay within. However, it is important that these provisions are:
- written in a clear, transparent and understandable way for the buyer,
- well justified.
The idea is for the buyer to be aware of what is involved and what costs they should prepare for. In addition, this will allow them to compare competing offers and decide on the best one. Remember this if you are planning to sign a contract with a developer. If you’d like, please vote in our poll below.
Source: Gazeta
Bruce is a talented author and journalist with a passion for entertainment . He currently works as a writer at the 247 News Agency, where he has established himself as a respected voice in the industry.
