11:45 4 January 2023
Consumer watchdog will examine indexation clauses in the real estate industry
Office of Competition and Consumer Protection (UOKiK), has launched a market study on the use of the so-called indexation clauses in the real estate development industry. As a result, 87 entrepreneurs received requests to provide information and necessary documents.
"Agreements should be formulated unambiguously and regulate the relations between the parties in an understandable way. Consumers have the right to know what obligations they incur, and what specific conditions they agree to,” UOKiK President Tomasz Chróstny said in a statement. “The developer's right to change the price cannot lead to the abuse of its position,” he added.
In the face of high inflation, costs of construction materials and workmanship, and the possible delays related to this, developers may try to seek protection against the loss of investment profitability. However, this should not be done at the expense of consumers, the consumer watchdog pointed out.
