Choosing a good developer

Buying a flat or another property is a lifetime investment that involves considerable financial outlay. That is why it is worth preparing properly for the purchase, choosing not only the ideal home but also a proven developer with plenty of experience and an impeccable reputation. In today's article you will get a handful of valuable tips on how to check a developer so as not to buy a pig in a poke.

The developer's credibility

Before we decide to buy a particular property, it is worth checking the developer in the National Court Register (KRS) or the Central Registration and Information on Business (CEIDG). Let us look carefully at the sections devoted to bankruptcy or enforcement proceedings. The more mentions we come across there, the worse it reflects on the developer of the property we have chosen.

We can also ask the developer for certificates from the Tax Office and the Social Insurance Institution (ZUS) confirming regular payment of taxes and insurance contributions. It is also worth paying attention to the legal form in which the business is run and looking at the ownership structure of the company. The more transparent and less suspicious the information, the more certain we can be that we are dealing with a reliable company.

Another point in a developer's favour is membership of the Polish Association of Developers and a recommendation from the Polish Association of Construction Industry Employers. These reputable associations bring together only proven players in the industry.

Information on the internet

The next step in checking a developer's credibility is to look through its website. Let us pay particular attention to the information it contains. Is the content comprehensive? Is it updated regularly? Reliable certificates confirming the developer's professionalism are also a good sign. The website should also contain information about current, completed and planned projects. The more of them there are, the better it reflects on the developer.

Another good way to check a developer is to look for information about it on internet forums. If any project in the company's history was problematic, previous clients will certainly not have hesitated to express their dissatisfaction publicly. Posts of this kind should make us wary.

The escrow account

In connection with this topic, it is worth mentioning that developers are obliged to carry out their projects using their own funds or loans. All payments from future owners of the properties must be held in a separate escrow account, so that in the event of complications or failure of the project they can be returned to the buyers. When deciding on a particular developer, it is worth asking whether this rule is observed.

The information prospectus

This is a document that we should study carefully before we decide to buy a flat or another property. In it we will find detailed information about the company, the projects completed so far, the legal status of the plot, the sources of financing of the construction, and mortgage encumbrances. The more comprehensive information the prospectus contains, the more credible the developer is.

And finally, let us remember that an honest developer will have no problem answering all our questions, presenting the relevant documents and providing comprehensive information. It will not be in their interest to conceal this knowledge from us; on the contrary, they should make every effort to earn our trust. If, however, in our dealings we see that the developer avoids answering the questions that concern us, it is worth considering looking for another, more credible one.