PL: Pay or loose apartments (Credit crunch gets exported)

Translation from gospodarka.gazeta.pl/gospodarka/ … kania.html

So… in Ireland you borrow from developers, in Poland developers borrow from you.

It also nice example how easily credit crunch goes abroad.

The credit crunch is everywhere but wow that’s bad :open_mouth: . Can the director not be charged with reckless trading by the police or 'corporate standards’regulators ??

He could but it would take a long time, and by then aparement could be auctioned. He plays in very devilish way, as any kind action against the company would make the people moneyless and homeless - so they have to copoperate. I think there is also issue of “real value” - they paid 5k/sqm off-plans initally, have to pay now 2k/sqm extra but “market value” is 7-8k/sqm. That makes it easier to convince people to pay. Another reason would be that in time between sale closed phase and deeds issued phase a bank is requiring an expensive insurance of loan, so again there is incentive to close deal quickly. It is disgusting and simple way to access cheap and completly unsecured credit.

So do these people own these apartments or not? Or did the developer just not hand over the deeds and is not blackmailing them?

We have an institution called “ksiegi wieczyste” which in direct translation would be “eternal books”. There is entry for every property which holds all the information - ownership, mortages secured on property. According to article people signed a deal to buy property and fully paid for it. However in the books owner is still developer and there is entry that US funds has secured loan on it. Until fund gives permission the ownership in the books cannot be updated, new owners cannot be added and their mortage cannot be secured on property.