Withdrawing from a Polish Developer Contract: When You Can Do It and How

Have you signed a developer contract for a flat or house in Poland, only for the project to stall, the property to turn out seriously defective, or the developer to miss the deadline for transferring ownership? In certain situations, the Polish Developer Act gives you the right to withdraw from the contract and get your money back — without paying any penalties. But this is a decision that needs careful preparation: the wrong legal basis, a late notice, or the wrong form can weaken your position considerably. Below we explain when withdrawal is possible, what happens to money held in the escrow account, and how to go through the procedure step by step — including from abroad.

This guide is general legal information, not legal advice. How the rules apply depends on your individual circumstances, the wording of your contracts and documents, and the deadlines that apply to your case. If you need advice or representation, the matter should be assessed by a qualified Polish lawyer. Twoja Sprawa helps you organise the documents for that assessment.

Key points

• The Polish Developer Act sets out a closed list of situations that entitle a buyer to withdraw — including missing or false information in the information prospectus, failure to transfer ownership on time, and a material defect confirmed at handover.
• Withdrawal on statutory grounds is, in principle, free of charge — the developer cannot claim a contractual penalty or a "withdrawal fee".
• Money held in the residential escrow account (rachunek powierniczy — a bank account that holds the buyer's payments until agreed construction milestones are met) is returned to the buyer once withdrawal takes effect.
• Some grounds come with short deadlines (for example, a period counted in days from the date the contract was signed, for defects in the prospectus) — miss it, and that route closes.
• If the buyer's claim has been entered in the land and mortgage register (księga wieczysta — the Polish public register recording ownership and claims against a property), the withdrawal notice must include consent to remove that claim, with a notarially certified signature.
• Withdrawal is not the same as "termination by mutual agreement" — the difference matters for both the money and the deadlines.

What withdrawal from a developer contract means

A developer contract (umowa deweloperska) is an agreement under which the developer commits to build the property and transfer ownership of the flat or house to you, in exchange for the price you pay. It is signed as a notarial deed (akt notarialny — a deed executed before a Polish civil-law notary, giving it enhanced legal force), and the buyer's claim is usually disclosed in the land and mortgage register for the property.

Withdrawal (odstąpienie) is a one-sided declaration that, once made, treats the contract as if it had never been concluded — both sides return what they received under it. You don't need the developer's agreement, but you do need a statutory or contractual ground.

When the Developer Act lets you withdraw

The Polish Developer Act (informally known as the "Developer Act" — the law on protecting the rights of buyers of residential flats or single-family houses and on the Developer Guarantee Fund; consolidated text: Dz.U. 2026 poz. 880) lists several situations that entitle a buyer to withdraw, including:

1. Defects in the information prospectus. If the contract is missing elements required by law, is inconsistent with the information prospectus (prospekt informacyjny — a mandatory disclosure document the developer must provide before signing) or its annexes, the prospectus was never delivered, or it contains false or incomplete information, the buyer may withdraw within a short deadline counted from the date the contract was signed.

2. Failure to transfer ownership on time. If the developer has not transferred ownership to you by the deadline set in the contract, you can set a further, reasonable deadline (in practice, typically 120 days), and once that deadline passes without result, you can withdraw. You keep any contractual claims that arose during the delay, such as contractual penalties.

3. A material defect confirmed at handover. If, during the handover inspection, a material defect is confirmed — one that prevents the property being used normally for its intended purpose, for example serious structural problems, a lack of watertightness, or non-functioning installations — and the developer refuses to acknowledge it or fails to fix it through the required procedure, the buyer may withdraw from the contract. In practice, an opinion from a qualified building surveyor confirming how serious the defect is often carries real weight.

4. Contractual grounds. The contract itself may provide an additional right of withdrawal — for example, in exchange for a "withdrawal fee". Contractual grounds exist alongside statutory ones, but they are often less favourable financially, so always read your own contract carefully.

Note: the developer can also withdraw — most commonly where the buyer fails to pay instalments despite being asked to. Don't ignore payment demands.

Withdrawal vs. termination by agreement — not the same thing

If a developer offers to "terminate the contract by agreement" while deducting a few per cent of the price, and you actually have a statutory ground for withdrawal, that agreement may simply be a bad deal. Conversely, where no statutory ground exists, a negotiated settlement is sometimes the only way forward.

What happens to your money — the escrow account and your deposit

Under contracts covered by the Act, your payments go into a residential escrow account — either an "open" or a "closed" one — held by a bank, not paid directly to the developer. After a valid withdrawal:

• money held in the escrow account is returned to the buyer — the bank pays it out once it receives the withdrawal notice and the required supporting documents,
• with an open escrow account, part of the funds may already have been released to the developer for completed construction stages — you claim that portion back from the developer directly, and if the developer becomes insolvent, protection is provided by the Developer Guarantee Fund (Deweloperski Fundusz Gwarancyjny — a statutory compensation scheme funded by developer contributions),
• people commonly talk about getting their "deposit back" — technically, this is a mutual return of what each side provided under the contract; on a valid statutory withdrawal, the developer should not be deducting anything.

If your contract (for example, a reservation agreement, or an older contract predating the Act) did not include an escrow account, your situation needs individual assessment — general rules on returning payments under the Polish Civil Code (Kodeks cywilny) may then apply.

Form of the notice and removing the claim from the land and mortgage register

This is where most practical mistakes happen:

• The withdrawal notice must be made in writing and delivered to the developer in a way you can prove — a registered letter with acknowledgement of receipt, alongside a parallel email.
• If your claim was entered in the land and mortgage register (which is usually the case with notarial developer contracts), the Act requires the notice to include consent to remove that claim, given in writing with a notarially certified signature — meaning, in practice, a visit to a notary before you send the notice.
• The notice should state: the parties and the date of the contract (including the notarial deed reference number), the specific ground for withdrawal, and a demand for the return of all sums paid, with a deadline and a bank account number.

Living outside Poland? A power of attorney solves the problem

Many buyers of flats from Polish developers live in the UK, Germany, or Norway. You don't need to fly to Poland:

• You can grant a power of attorney (pełnomocnictwo) to someone you trust in Poland to submit the withdrawal notice and the consent to remove the claim from the register. Because that consent requires a notarially certified signature, the power of attorney should generally be granted in an equivalent or higher form (compare Article 99 § 1 of the Polish Civil Code).
• You can arrange the power of attorney through a Polish consul or a local notary — in the latter case, you will usually need an apostille (an official certificate confirming a document for use in another country) and a sworn translation.
• Plan ahead — withdrawal deadlines don't wait for a consular appointment to become available.

Documents and evidence to gather

Common mistakes

• Withdrawing out of frustration, without valid grounds. A few weeks' construction delay or minor snags usually aren't enough — an invalid withdrawal can backfire on you.
• Missing the short deadline for prospectus defects — counted from when the contract was signed, not from when you spotted the problem.
• No consent to remove the claim from the register in the required form — the developer can then dispute whether your notice was effective.
• Signing a "termination agreement" with a deduction, despite having a statutory ground for a cost-free withdrawal.
• Handover without a proper report — without documented defects, it's hard to prove a material defect existed.
• No proof of delivery of the notice to the developer.

Step-by-step: what to do

1. Gather the documents listed in the table above and work out exactly what happened and when.
2. Identify your ground for withdrawal — statutory or contractual — and check whether the deadline is still running.
3. Get a lawyer to check the ground before you act — an invalid withdrawal can leave you worse off than doing nothing.
4. If it's a material defect — secure a surveyor's report and the full set of handover documentation.
5. Prepare the withdrawal notice, stating the ground and demanding the return of your money; if the claim is registered, attach consent to remove it with a notarially certified signature (arranged in person, through a consul, or through an attorney).
6. Deliver the notice to the developer by registered post with acknowledgement of receipt; send a copy by email as well.
7. Notify the bank holding the escrow account and submit the documents needed to release the funds.
8. If the developer disputes the withdrawal or doesn't refund the money — send a formal payment demand, then consider court proceedings.

Deadlines and limitation periods

• Prospectus/contract defects — a short deadline counted from the date the contract was signed.
• Failure to transfer ownership — once the further deadline set for the developer has passed without result.
• Material defect — deadlines linked to the handover and defect-rectification procedure.
• The claim for a refund after withdrawal is subject to the general limitation rules — for a consumer, this is generally 6 years, running to the end of the calendar year (Article 118 of the Polish Civil Code; consolidated text: Dz.U. 2026 poz. 795).

Don't put off getting this assessed — with this kind of claim, the calendar often decides the outcome.

Frequently asked questions

Does withdrawing from a developer contract cost anything? When you withdraw on statutory grounds, the developer generally cannot claim a contractual penalty or a withdrawal fee. You will still have your own costs: the notary, and possibly a surveyor and a lawyer. If you withdraw under a contractual clause instead, the financial terms are whatever the contract says.

Will I get back everything I paid, including my "deposit"? After a valid statutory withdrawal, you can generally claim back everything you paid. Money in the escrow account is refunded by the bank; for amounts already released to the developer, you claim against the developer directly, and if the developer becomes insolvent, the Developer Guarantee Fund provides protection.

Can I withdraw just because construction is delayed? A delay on its own usually isn't enough. What matters is the ownership transfer deadline in the contract: once that passes, you set the developer a further deadline, and only once that further deadline expires without result can you withdraw. You can also claim contractual penalties for the delay in parallel, if your contract provides for them.

What counts as a "material defect", and who decides? It's a defect that stops you using the property for its intended purpose — for example, structural problems, water ingress, or installations that don't work. In a dispute with the developer, a building surveyor's opinion carries real weight, and ultimately it's a matter for the court to decide.

I live in the UK — do I have to travel to Poland to withdraw? No. You can act through an attorney in Poland, or sign in front of a Polish consul. Just make sure the power of attorney is in the right form, and — if you use a foreign notary — that you arrange an apostille and a sworn translation.

The developer says my withdrawal isn't valid. What now? Have a lawyer check the ground and the form of your notice, send a formal payment demand with a deadline, and if the money still isn't refunded, consider a court claim. Keep all correspondence.

Related guides

• How to prove a material defect in a flat bought from a developer, and what it gets you at handover
• Developer delaying handover of your flat: what rights and claims you have
• Statutory warranty, guarantee, and the Developer Act: which route to take to get defects fixed
• Document checklist for a case against a developer: what to prepare before your assessment
• All guides on disputes with companies — the full knowledge base

Wondering whether withdrawal is an option in your situation? Send us your developer contract, the information prospectus, and any correspondence so far — we'll help you organise the documents for further assessment. Submitting the form does not create a contract, and the initial review is free. Tell us about your problem with a developer