Buwog International, a subsidiary of Immofinanz Group responsible for the third stage of the Oak Terraces („Dębowe Tarasy”) housing estate, is now offering a closed housing escrow account to its clients. The trust deposit is being kept by BRE Bank Hipoteczny on behalf of the developer.
The developer claims it is most probably the only one escrow account established within a housing investment being conducted in the Silesia region at present. Residential investors are obliged to open such accounts as the Polish Parliament passed the Act on the Protection of Rights of a Purchaser of Residential Premises or of a Detached House (the “Developers Act”) which has entered into force on 29th of April 29 2012. This act lays under several new obligations on real estate developers.
The escrow account agreement is concluded between the bank and the developer. It is used for storing funds paid by the apartment’s buyer. The bank secures the money and the developer will receive the deposited funds only in case of completion of the investment. Also, the funds are protected against enforcement proceedings against such a developer and against bankruptcy.
“All it means that even the construction work is suddenly stopped, the client will not lose his money. The rule says the funds are disbursed to the developer when the apartment’s ownership is transfered to the client” – explains Sven-Torsten Kain, BRE Bank member of the board.
“We have started the pre-sales of the apartments before 29th of April, so we were not obliged to open the trust deposits. However, in view of the high quality of customer service and secure transactions with the clients, we knowingly decided to offer the closed housing escrow accounts” – said Janusz Olesiński, project manager of Oak Terraces.
The third stage of the housing estate, located on Johna Baildona St., is worth EUR 21,7 million. The developer will deliver 317 comfortable and functional apartments in three buildings – one with 11 storeys and two with five storeys each. Future residents can choose from one- to four-room apartments with areas ranging from 27 up to 110 sq. meters. The construction work was begun last month and will be finished in November 2013.