Development contract and contractual penalties
IN development contracts you may come across regulatory provisions contractual penalty issueswhich are definitely abusive in nature. Illegal provisions relating to the calculation of penalties are one of the most common sins committed by developers.
– The problem of abuse often concerns the provisions regulating collection cases. contractual penalties.This problem can take several forms: reserving the right to charge contractual penalties only by the promoter, excessive amounts of contractual penalties to the detriment of the consumer, or limiting the amount of contractual penalties due to the consumer by the promoter. – notes Paulina Szeremeta, legal consultant at the law firm K&L Legal Granat i Wspólnicy, in an interview with Gazeta Prawna.
Prohibited provision relating to contractual penalty
The list of unfair terms maintained by the President of the Office for Competition and Consumer Protection (UOKiK) contains a large number of illegal provisions concerning contractual sanctions.
– In number 156 the following provision was entered: “The contractual penalty due to the buyer in the circumstances listed in section 1 is 0.1 percent. the amount paid by the buyer for each day of delay exceeding 60 days, but not exceeding 10 percent. that amount” – says lawyer Szeremeta.
What is a development agreement?
The development contract is one of the most frequently concluded contracts. Its definition is set out in the Law of 20 May 2021 on the protection of the rights of the purchaser of a residential property or house and of the developer’s guarantee fund. According to art. 5, point 6 of the previous law, it constitutes “an agreement concluded between the buyer and the developer, under which the developer undertakes to construct a building and establish separate ownership of the residential premises and to transfer the ownership of these premises and the necessary rights to use this property to the buyer or to develop the landed property constituting the object of ownership or perpetual usufruct of single-family housing and transfers to the buyer the ownership of this property or perpetual usufruct of land and the ownership of single-family housing built on it constituting an independent property or transfer of a fractional share of the ownership of this property together with the right to exclusive use of the part of the property intended for the satisfaction of housing needs, with the buyer being obliged to make a monetary payment for the acquisition of this right.
