The investment is being carried out in accordance with the applicable developer laws. Buyers are provided with one of the protection measures provided for by the act – an open escrow account. In this special type of bank account customers make regular payments towards a development investment. The funds from the escrow account are intended for the construction of residential premises, and the developer receives them from the bank as construction progresses.
When signing the development contract, you receive a detailed payment schedule with payment dates closely related to the progress of work on the construction site. The bank holding the escrow account controls the completion of each stage of the project – based on the construction manager’s entries in the construction log, confirmed by the Bank’s inspector. If everything is in accordance with the work schedule, the bank pays the developer a tranche of funds, in accordance with the developer agreement in force.
The bank also controls how the developer uses the funds from the escrow account. This ensures that your interests are protected, and that the money is paid towards your chosen apartment in the First District. Therefore, the risk of using these funds for purposes other than the implementation of a given development project is reduced.
Considering taking a loan and you want to learn about the loan agreement conditions? We encourage you to contact the financial expert credit house NOTUS Finanse S.A., with whom we cooperate. They will answer all questions and explain any issues that raise doubts. A conversation with an expert will help you make a good decision.