Developer delay in Poland – contractual penalties, compensation, withdrawal (2026)
Author: Tacjana MasiukiewiczLaw and contracts~15 min read
A developer's delay gives you three tools: a contractual penalty (and, if the agreement has no penalties or interest, statutory compensation), damages on general principles and – when the developer does not transfer ownership on time – the right to withdraw from the agreement after setting it an additional 120 days. We explain which deadlines count, what to do step by step, how a delay affects a mortgage and how much a contractual penalty is worth compared with the cost of renting.
Key facts
- A developer agreement must contain the deadline for transferring ownership, the deadline for completing the works and the deadline for handover of the unit (art. 35 sec. 1 pt 7, 12 and 17 of the Developer Act).
- Contractual penalties are not mandatory – the agreement states their amount if the parties provided for them (art. 35 sec. 1 pt 14). Without penalties and interest the developer pays compensation equal to statutory interest for delay – currently 9.25% a year (art. 39 sec. 2).
- If the developer does not transfer ownership on time, you set it 120 days, and after they pass without result you may withdraw from the agreement and keep the claim for the penalty for the period of delay (art. 43 sec. 1 pt 6 and sec. 3).
- After withdrawal the developer returns the money released from the escrow account within 30 days; if it does not, the Developer Guarantee Fund takes over the refund (art. 44 sec. 3, art. 48 sec. 1 pt 6).
- A contractual penalty is due regardless of the amount of the loss, but as a rule it closes the way to higher damages, unless the agreement provides otherwise (art. 484 § 1 of the Civil Code).
Which deadlines in a developer agreement count?
Your rights depend on which deadline has been missed. The Developer Act (consolidated text, Journal of Laws 2026 item 880) requires the agreement to define each of them separately:
- the deadline for starting and completing the construction works (art. 35 sec. 1 pt 12) – that is, when the building is to be ready;
- the deadline and manner of notification of handover and the deadline for handover of the unit (pt 17) – when you get the keys;
- the deadline for transferring rights, that is signing the notarial deed transferring ownership (pt 7) – when you become the owner.
The statutory right to withdraw because of delay concerns only the deadline for transferring ownership. A late handover or a postponed completion of construction may justify a contractual penalty (if the agreement provides for one) or damages. Also check the gap between the dates: a few months between handover and the transfer of ownership is in practice a buffer for the developer. What else the agreement must contain we describe in the article The developer agreement (umowa deweloperska) – what it must contain and what to watch out for.
Contractual penalties for a developer's delay – when they are due and how much they are
The Act does not impose contractual penalties or their amount. The developer agreement is only to state the amount of interest and contractual penalties for the parties, if the parties provided for them (art. 35 sec. 1 pt 14). The agreement may calculate them, for example, as a percentage of the price or of the amounts paid per day of delay, sometimes with a cap. The Act gives two safeguards:
- symmetry – if the agreement provides for interest for the developer (for your late payments) and penalties for you, the developer's claims for interest may not be higher than your penalties (art. 39 sec. 1);
- statutory compensation – if the agreement provides neither a contractual penalty nor interest, the developer pays compensation equal to the statutory interest for delay that would be due to it from you (art. 39 sec. 2). With the NBP reference rate at 3.75% statutory interest for delay is 9.25% a year (art. 481 § 2 of the Civil Code). The provision does not state the base of calculation directly – it is worth clarifying this in the agreement.
The Civil Code (consolidated text, Journal of Laws 2026 item 795) adds two rules. A contractual penalty is due regardless of the amount of the loss – you do not have to prove how much you lost (art. 484 § 1 of the Civil Code). But the same provision excludes damages exceeding the penalty, unless the parties decided otherwise. With a low penalty and high costs and no clause on supplementary damages you are left with the difference. The developer may also demand a reduction of the penalty when it is grossly excessive (art. 484 § 2 of the Civil Code).
Beware of a very low cap on the penalty, a long list of "independent causes" or an automatic postponement of the deadline. A provision not individually negotiated that significantly limits liability to a consumer for non-performance of an obligation is, in case of doubt, regarded as unfair – and then does not bind you (art. 385¹ and 385³ pt 2 of the Civil Code).
Already have a draft agreement? We will check the draft agreement and the developer's documents – we will compare the deadlines with the prospectus and point out the clauses on penalties and force majeure to negotiate.
An example: a contractual penalty versus the cost of renting with a 180-day delay
Will the penalty cover the rent if the move slips by half a year? We take the median 2-room flats from our offer (according to data from the TM Invest offer, as of 27 September 2026): in Warsaw 755,824 zł for 39.4 m², in Wrocław 662,405 zł for 40.8 m². We assume two sample penalty variants – 0.01% and 0.02% of the price per day (an assumption, not a statutory norm). We calculate the cost of renting at the average rates from the NBP report for Q1 2026: 85.1 zł/m² in Warsaw and 67.5 zł/m² on average for six big cities, including Wrocław (excluding the administrative rent and utilities).
| Item (180 days) | Warsaw – 2 rooms, 755,824 zł, 39.4 m² | Wrocław – 2 rooms, 662,405 zł, 40.8 m² |
|---|---|---|
| Penalty of 0.01% of the price a day (1.8% of the price) | 13,605 zł | 11,923 zł |
| Penalty of 0.02% of the price a day (3.6% of the price) | 27,210 zł | 23,847 zł |
| Rent of a similar flat – monthly | 3,353 zł | 2,754 zł |
| Rent for 6 months | 20,118 zł | 16,524 zł |
| Difference with a penalty of 0.01% | −6,513 zł | −4,601 zł |
| Difference with a penalty of 0.02% | +7,092 zł | +7,323 zł |
A penalty of 0.01% a day does not cover even the rent, and on top come charges, utilities, the move and the costs of a loan. A penalty of 0.02% already gives a surplus. So negotiate not only the rate but also the base (the whole price or the amounts paid – with 40% of the price paid, the penalties in the table fall to 40%), the cap and the right to damages above the penalty.
The developer has not handed over the flat on time – what to do step by step?
- Gather documents and dates. The agreement, annexes, correspondence, proof of payments – check which deadline has passed and what penalty the agreement provides.
- Do not sign an annex postponing the deadline without analysis. Such an annex may mean waiving penalties for the delay so far.
- Send a written demand for payment of the penalty. State the deadline from the agreement, the number of days of delay, the penalty rate and the amount. Keep proof of delivery.
- Document the loss. A lease, bills, additional loan costs.
- After the deadline for transferring ownership has passed, set 120 days. This is the condition for withdrawal (art. 43 sec. 3) – in writing, dated.
- Decide: wait or withdraw. When construction is nearing the finish it is usually better to wait and claim the penalty; when work has stopped – consider withdrawal.
You may also demand performance of the agreement: your claim to the transfer of ownership is disclosed in the land and mortgage register (księga wieczysta) (art. 38 sec. 2), and as a last resort a final court judgment replaces the developer's declaration of intent (art. 64 of the Civil Code).
Delay in transferring ownership – withdrawal from the agreement and a refund
A purchaser has the right to withdraw from the developer agreement if the rights are not transferred to them by the deadline resulting from the agreement (art. 43 sec. 1 pt 6). First, however, they must set the developer a 120-day period for transferring ownership – only after it passes without result may they withdraw, keeping the claim for the contractual penalty for the period of delay (art. 43 sec. 3). The declaration of withdrawal must be in writing with a notarially certified signature and contain consent to the deletion of your claim from the land and mortgage register (art. 45 sec. 1).
The consequences of withdrawal: the agreement is deemed not to have been concluded, and you bear no costs connected with it (art. 44 sec. 2). Funds still in the residential escrow account are paid out to you by the bank without delay on receipt of the declaration (art. 18 sec. 1). Money already released to the developer from an open account the developer must return at the latest within 30 days (art. 44 sec. 3). If it does not, the refund of the payments is covered by the Developer Guarantee Fund (art. 48 sec. 1 pt 6) – we describe the details in the article The escrow account and the DFG. All the other grounds for withdrawal and the procedure step by step are in the text Withdrawing from a developer agreement.
| Delay | What you can do | Basis |
|---|---|---|
| Postponed completion of construction | A contractual penalty, if the agreement provides for one for this; damages for proven loss | art. 35 sec. 1 pt 12 and 14 DA; art. 471, 483–484 CC |
| Late handover of the unit | A contractual penalty or damages (e.g. rent costs), if the developer is responsible for the delay | art. 35 sec. 1 pt 17 DA; art. 471, 477 CC |
| Ownership not transferred on time | A contractual penalty; setting 120 days, then withdrawal keeping the penalty | art. 43 sec. 1 pt 6 and sec. 3 DA |
| An agreement without penalties and without interest | Compensation equal to statutory interest for delay (9.25% a year) | art. 39 sec. 2 DA; art. 481 § 2 CC |
| No refund after withdrawal | An application for a refund from the Developer Guarantee Fund | art. 44 sec. 3, art. 48 sec. 1 pt 6 DA |
Damages for a delay in handing over the flat, and force majeure
Regardless of contractual penalties the debtor is liable for loss resulting from non-performance or improper performance of the obligation, unless it results from circumstances for which the debtor is not responsible (art. 471 of the Civil Code). In case of delay you may claim compensation for loss regardless of the fact that you still want the flat (art. 477 § 1 of the Civil Code). It covers losses suffered and lost profits (art. 361 § 2 of the Civil Code) – e.g. rent costs, bank charges or lost rent when buying to let. You must, however, prove the loss, and with a contractual penalty for the same event damages above the penalty are as a rule not due.
The developer's most common defence is "independent causes": weather, utility operators, offices, force majeure. A clause "the deadline is extended by the duration of circumstances independent of the developer" without a closed list lets the deadline be moved almost at will. A good agreement names specific events, requires written notification and limits the extension to the actual duration of the obstacle. We write about how to check a developer's record on deadlines in the guide How to check a developer before buying.
Delay and a mortgage – tranches and bridging insurance
With a mortgage a delay costs twice over. The bank releases tranches after the stages of construction are completed, so a postponed schedule may require an annex to the loan agreement. Until the mortgage is registered the bank usually applies bridging insurance or a higher margin – and this period lengthens by every month of delay. Check these costs in the loan agreement and include them in the loss. How tranches and registration of the mortgage work we describe in the article A mortgage in Poland step by step.
Coordinate a withdrawal with the bank – before you send the declaration, ask how it will settle the tranches already released.
How to reduce the risk of delay before buying?
The simplest way is to buy a flat in a ready building or at the last stage of construction. According to data from the TM Invest offer, as of 27 September 2026, in Warsaw we have 37 developments put into use and 36 under construction, and in Wrocław 24 ready and 21 under construction – you will find an overview on the pages new flats in Warsaw and new flats in Wrocław. With a flat under construction make sure the penalty is calculated on the price, without a low cap, with supplementary damages and a closed list of circumstances extending the deadline. Delay is not the only risk – we write about defects discovered after handover in the article The developer's warranty (rękojmia).
Frequently asked questions
Does a developer have to pay contractual penalties for delay?
Only if the agreement provides for them – the Act requires their amount to be stated if the parties set them. When the agreement provides neither penalties nor interest, the developer pays compensation equal to statutory interest for delay (currently 9.25% a year), under art. 39 sec. 2 of the Developer Act.
How much is the contractual penalty for a developer's delay?
There is no statutory rate – the agreement decides, e.g. a fraction of a percent of the price for each day. At 0.01% a day and a flat at 755,824 zł half a year of delay gives about 13.6 thousand zł, that is less than the cost of renting a similar flat in Warsaw over that time.
When can I withdraw from the developer agreement because of delay?
When the developer has not transferred ownership to you by the deadline in the agreement. First you set it 120 days to transfer the rights, and after they pass without result you file a declaration of withdrawal with a notarially certified signature. You keep the right to the contractual penalty for the period of delay.
Can I claim the cost of renting during the delay?
Yes, as damages, if the developer is responsible for the delay and you document the costs. If, however, the agreement provides a contractual penalty for this delay, damages above the penalty are due only if the agreement allows it (art. 484 § 1 of the Civil Code).
Should I sign an annex postponing the handover date?
You do not have to. Before you sign, check whether the annex contains a waiver of penalties for the delay so far and whether you get something concrete in return, e.g. a discount or a higher penalty for further postponement. An annex to a developer agreement also requires the form of a notarial deed.
Summary
A developer's delay does not leave you without protection: you have contractual penalties or statutory compensation, damages on general principles and, if ownership is not transferred, the right to withdraw after 120 days with a full refund of your money, secured by the escrow account and the DFG. The real value of that protection depends on the agreement – our example shows that a penalty of 0.01% a day may not cover even the rent.
Before you sign an agreement, order a review of your developer agreement from us – we will go through the draft and the developer's documents and point out the clauses on deadlines and penalties to negotiate. If you are only looking for a flat, we will help you choose a development and go through the purchase – most often without a commission for the buyer, as the fee is usually paid by the developer. We have been on the market since 2016.
Legal status as of September 2026. The calculations are indicative, and the contractual penalty rates in the example are an assumption. The article is not legal advice – in a dispute with a developer consult a lawyer or legal adviser.
Sources
- Act on the Protection of the Rights of a Purchaser of a Residential Unit or Single-Family House and on the Developer Guarantee Fund – consolidated text, Journal of Laws 2026 item 880 (art. 18, 35, 38, 39, 43–45, 48).
- Act – Civil Code – consolidated text, Journal of Laws 2026 item 795 (art. 64, 361, 385¹, 385³, 471, 477, 481, 483–484).
- NBP – Information on home prices and the situation on the residential real estate market in Q1 2026 (rent rates).
- NBP – basic interest rates (reference rate 3.75% since 5 March 2026).
- Flat prices: the TM Invest catalogue of developments, as of 27 September 2026.
