How to check a developer’s credibility?
For many people buying an apartment is an once-in-a-lifetime decision, therefore you should prepare appropriately. One of the key tasks is to collect as much information as possible about the developer of a particular estate. If you have any doubts, find the answer to 10 questions we have prepared together with an expert.
- Does the developer have at least several years of experience and completed investments, which have been well received by clients? YES / NO
Expert’s comment from the Legal Department at Ronson Development:
Marta Jankowska: A developer’s experience plays a very important role in the verification of its credibility – after viewing completed investments you can assess its building standards and reliability in meeting deadlines.
2. Does the developer publish information about the stages of completion of its investments online? YES/NO
Marta Jankowska: An open information attitude indicates that the developer has nothing to hide and is eager to share the progress of construction work with its clients. Most often, the developer provides information about construction progress and sales via the press office. You can check information HERE.
3. Are there any articles about the developer in such newspapers and portals as Rzeczpospolita, Gazeta Wyborcza, Housemarket.pl and Rynek Pierwotny? YES/NO
Marta Jankowska: : The titles mentioned above are nationwide newspapers and websites, which often publish articles about the most interesting residential projects. If the developer’s name appears in the media, it means that we are not dealing with a front company that operates in the market by accident. Journalists of the leading newspapers often precede their information with reliable analysis on which they base their articles. An example of such an article can be found here.
4. Is the developer listed on the Stock Exchange? YES/NO
Marta Jankowska: Presence on the Stock Exchange enhances the company’s credibility and transparency. Listed companies are subject to specific disclosure obligations, among others, they are required to publish financial reports. As a result, clients are able to verify the company’s current financial position and how the developer is perceived by the market.
5. Does the developer allow entry to already completed investments? YES/NO
Marta Jankowska: The possibility to visit already completed investments or allowing potential clients to enter the construction site confirms that the developer has not only nothing to hide, but is also satisfied with the results of their work and responds to the client’s needs.
6. Were projects carried out by the developer completed in compliance with the announced deadlines? YES/NO
Marta Jankowska: It very often happens that clients are buying apartments that are still in the construction stage and they have to wait for their housing unit for up to several months. Of course, it happens, for reasons beyond the developer’s control, that the construction could be delayed for several months. However, if delays are regular and last more than six months, it is worth carefully thinking over your decision to buy an apartment from them.
7. Has the developer got a policy of open information on its financial position? YES/NO
Marta Jankowska: The developer’s credibility is enhanced by its open information policy concerning the company’s financial results. In the case of developers listed on the stock exchange access to such information is easier, since the companies are required to publish it.
8. Does the developer incur loans to carry out further investments? YES/NO
Marta Jankowska: Contrary to appearances, providing loan facilities for the construction of new investments is a good sign of a developer’s credibility. It enhances the certainty that its financial position is stable and it is perceived as a credible borrower in the eyes of financial institutions that provide such loans.
9. Is the developer a member of the Polish Association of Property Developers? YES/NO
Marta Jankowska: Membership in the Polish Association of Property Developers confirms adherence to the highest standards of buyer service. A developer belonging to the Association not only automatically and voluntarily agrees to comply with set standards, but it is also verified by the Association, which supervises the correct fulfilment of obligations and reacts in the event of notifications and inquiries from buyers.
10.Is the legal status of land on which the developer is building its investment settled? YES/NO
Marta Jankowska: The legal status of land or real estate can be determined by obtaining a copy of the land and mortgage register kept by the district court. If the developer has nothing to hide, employees of the legal department will be happy to assist you in obtaining such information.
If the answer was ‘YES’ to at least 9 out of 10 questions, it means that you are dealing with a credible developer.