Developer agreement2 min read202 words
The developer agreement: what really protects the buyer?
The developer act and the Developer Guarantee Fund changed the rules in the buyer’s favour. The question is no longer "am I protected" but "how do I use that protection" — and many buyers don’t know.
The developer act and the Developer Guarantee Fund changed the rules in the buyer’s favour. The question is no longer "am I protected" but "how do I use that protection" — and many buyers don’t know.
The new developer act (in force since 2022) broadened buyer protection — from the escrow account, through the information prospectus, to the Developer Guarantee Fund. In practice this means your money is secured at every stage of construction, not only after handover.
What actually protects you?
That’s the first and most important question. The scope of protection depends on the type of escrow account (open or closed) and on what ends up in the information prospectus and the developer agreement signed before a notary.
What to check before signing
- Check the type of escrow account and the rules for releasing tranches
- Read the information prospectus together with its annexes
- Verify the construction schedule and the handover date
- Establish the rules for price changes and penalties for delay
- Compare the design floor area with the permitted tolerance
The key word is "transparency". A good developer agreement doesn’t hide risk in footnotes — it states it plainly. And the readability of that contract says the most about the developer you’re dealing with.
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