• These are our new terms and conditions. If you do not comply with them, we will not transfer ownership of the flat. Consumers could have interpreted the information received from developers in this way.
• The President of UOKiK has brought charges against the following companies: Idea-Inwest, M2R, and Jelbud.
• Information provided by the developers could have put pressure on consumers and prompted them to pay a higher price for the flat or to abandon their claims. This is not permitted.

UOKiK has received complaints from consumers regarding the actions of developers after the conclusion of development agreements. These reports gave rise to investigation proceedings by the President of UOKiK. After analysing the evidence – including contracts, buyers’ reports and correspondence from the entrepreneurs – the President of UOKiK initiated proceedings concerning practices infringing the collective interests of consumers against the following developers: Idea-Inwest (Sky Garden investment in Szczecin), M2R (Levityn Apartamenty investment in Pabianice), and Jelbud – Charłampowicz, Kusz (investment at ul. Kąpielowa 5B and 5C in Karpacz).

Sign the addendum and pay extra, or you will not obtain ownership

Idea-Inwest and M2R informed consumers that, in order for ownership of the flat to be transferred to them, they had to sign an addendum to the development agreement increasing the previously agreed price of the property. The letters received by consumers stated that if they did not pay the additional amount, the developers would take legal action to demand an increase in the price. Furthermore, according to Idea-Inwest and M2R, failure to pay the additional amount would jeopardise the security of the investment and result in significant losses for the developer.

According to UOKiK, this information could have caused consumers to feel that there was a real risk that they would not become the owners of the flats for which they had already paid – at least several hundred thousand zlotys. It could also constitute a form of unacceptable pressure and significantly limit consumers’ freedom of choice as to whether to agree to an increase in the agreed price of the premises.

The flat will be yours – just give up your rights

In turn, the developer Jelbud – Charłampowicz, Kusz sent letters to consumers offering to release the company from its liability for the delay in transferring ownership of the flat. The buyer was asked to waive liquidated damages for this delay. The developer stated that it was in a difficult financial situation and would become insolvent if consumers sought payment of the liquidated damages. In addition, it suggested that restructuring proceedings might be initiated against it. Such information could have put unacceptable pressure on buyers, as a result of which many of them may have waived their rights. People who purchased flats in Karpacz waited up to two years for the transfer of ownership.

– In the proceedings, we will examine whether the developers used prohibited aggressive market practices against their customers. The essence of such practices is to exert undue pressure that significantly restricts, or may restrict, consumers’ freedom to make decisions. The purchase of a flat is a major and valuable investment, often financed by a loan, so the prospect of the developers’ poor financial situation or the non-completion of the investment, as presented in their letters, could have caused concern among buyers. Many of them may have accepted the new terms of the agreements solely out of fear that they would not obtain ownership of the flat and signed addenda increasing the agreed price or agreed to waive their claims against the developer – says UOKiK President Tomasz Chróstny.

Proceedings concerning infringements of the collective interests of consumers may result in the imposition of a financial penalty of up to 10% of the entrepreneur’s annual turnover.