Have you all received the Nowy Wilanow Delivery update?I wasnt actually aware of any problems until yesterday.As it seems, some of us, including PS, are aware of certain problems.Well, PS's update didnt really help clarify matters.

Presuming that we have got sound contracts signed at notars and we have made all payments, what sort of delivery problems can we get into?Is the delivery date likely to be postponed or is it the finishing that is likely to be below agreed-upon standards?And, presumably, we have agreed a fixed all inclusive price from the outset, why would the agreed upon price change now even if the developer's cost are rising??Also, you seem to imply that the developer is delaying delivery because some of us are struggling with their mortgage and/or payment. I for one am not ready to shoulder any body else's problems. I made full payments and I expect my unit to be delivered on time according to contract. I should not be affected by those who are strugging with their payment schedule.

Good points Claude.The Update seems to raise more questions than it answers. It hints at multiple problems, which may or may not affect all buyers.

What exactly are PS trying to say, that they entered into agreement with people who cant be trusted to honour contracts?

I think that's exactly what PS are saying - that there is a real danger the developer may decide not honour his contract. I really don't want to think about the legal and financial fun and games that would ensue if that were to happen. I'm also confident that, if the developer had seemed dodgy at the time, PS wouldn't have dealt with them. PS don't want the hassle any more than we do.I also agree with Claude - we have a contract, and if the Developer has screwed up, tough. BUT, we are dealing with Eastern Europe, things work differently, and ideally we all want our units delivered as agreed. So I think we have little practical choice but to let PS negotiate on our combined behalves, rather than each individually trying to do something.Philosophically these things happen, but it's a pain when they happen to you.Andrew

Hi Claude The BIG issue at stake is whether clients paid ON TIME - not just whether they have paid. The fact that some clients have not paid just makes him more argumentive and difficult to deal with. That is essentially our problem - not yours - it just raises our costs and slows things down. It is not your problem if someone else hasn't paid and you have - but it is one of the explanations why this process is proving torturous for all. So, back to the big issue... The developer claims that NOT ONE client paid on time (even if now fully paid up) - and therefore, according to the notarised contract this allows two things - the developer to charge statutory interest rate at 11.5% (see section 11.1) - the developer may delay handover (see section 6.1) So, your position in this is very weak - if payments were received late. The next big issue is that the developer is threatening to recind contracts. That would, no doubt, lead to the courts - with all the expense and hassle - and lack of successful investment that would entail. To be honest, it is hard to know whether the developer is serious with this threat - or even if the director we deal with would have the ultimate say in this. But it is risk that affects the negotiating positions. If you know that you HAVE made all your payments on time - would you please let the customer service team know - as it will affect the negotiation for your unit. Our objective is to negotiate as best we can - and then bring a proposed solution to each client. The solution will vary between those clients who have now paid in full - and those who have not. You choice will then be whether you wish to take that offer or if you wish to reject it. If you reject it, then it is likely that you will go down the legal route - and we will put you in touch with lawyers who can work with you. Equally, if you reject the offer, we will find out if the developer honours his threat to recind the contracts. We aim to get something to you on Monday. Cheers Neil Cheers Neil

Hi Claude - re: "PS's update didnt really help clarify matters" - would you prefer us not to keep you informed in future - and only let you know when everything has been thrashed out? It is, of course, easier for us not to communicate with you when issues are unclear/ difficult, and if it is of no benefit to you, then should we can drop this service? Let me know if our communication doesn't help. Cheers Neil

Hi Mair As per my reply to Claude - we have a choice to let you know what we know - or to wait until we have finish 100% answers. It is easier for PS to wait - but we believe that as grown up investors - and working in a spirit of partnership - it is better for us to communicate with you early. This is the best practise used by the best firms - in all their dealings - and to my experience, people get critised - rightly - when they communicate late (take the Shell reserves scandal as an example). However, if our communication is of no benefit - then we will gladly spend our time doing something more productive for PS. Equally, according to your contract with the developer - and as per my post above - and according to the fact that it appears (and please, if this is not true you must let us know as soon as possible) that not one client paid on time - allows the developer to do a bunch of things according to the contract he holds with you. This is not to say that 'PS have entered agreement with people who can't be trusted' - but to say you have signed a contract and we are asking if you have fulfilled the terms of your contract? The issue with this developer is not that he can't be trusted on contracts - but that he is being inflexible about apply the letter of the contract. Quite the opposite to what you suggest. Cheers Neil

Hi Andrew Thanks - yes, we are doing what we can. Just to confirm - each investor will get a choice of either accepting the offer - or rejecting it. We are working to get it improved - but there is a risk that the developer may attempt to pull and just say 'sue me'. Also, each investor will get an offer that relates to his circumstances - ie. if you have paid in full you'll get a better offer than if you have not... etc... The key issue right now - is for us to know if any client made all his payments on time? The developer is claiming that none has - but PS don't have any means of knowing. Cheers Neil

Wow this seems to be kicking off and i hope we can come to an amicable agreement soon. My first payment did go in late, though was hardly my fault, but saying that it was defineitly not the developers fault so i am more than happy to follow the letter of the contract and pay his 11.5% interest as long as the calculation is audited. From my calculations my first payment went in about 2 months later (Fortis problems mainly) and 2nd payment went to developer on time (though we have had no recepit or confirmation from developer he has received the money). But 11.5% on first payment for 2 months is not the end of the world. Also the developer has already delayed the handover due to the winter, is he also allowed to delay further for late payment or is this all linked somehow. Handover for my apartment is already running a month or two behind. This is certainly a worry but i hope we can come to a professional agreement and if he charges me penatly interest and hands over the keys then i will not be too upset, as i was indeed late on the first payment.

Neil, First of all, I am releaved and pleased that PS is working hard with their local partner and the lawyers in order to get us a decent delivery delay offer from the developer. I presume a few months delay wont be a disaster although for those having purchased a few units, cashflow wise, it might be a bit of a strain. I have personally visited the Nowy Wilanow development in July and although it looked almost complete from the outside, It was pretty much obvious to me that, bar a miracle, they wouldnt be able to get the interior fully sorted out before November at the earliest. Secondly, just like most investors, although I am 100% certain that all payments have now been fully made, I cant say for sure whether I paid each installment in time due to the various sides involved: Open Finance, the bank, the lawyers and the developer. Having said that, I agree with Simon in the sense that, if the developer proves me late for any installment, I am happy to pay the due interest. Communication wise, obviously I am happy to be kept informed. However, the way the latest update was worded, conveyed a gray picture of various serious issues having arisen one after the other leading to a critical situation. A week or two before the update, upon enquiry, I had received an email from PS reassuring me that my unit would be delivered in October without mentioning any potential issues. I, personally, would prefer a gradual communication as and when issues (might) arise, rather than waiting for serious issues to accumulate then sending us a rather gloomy and worrisome update. C.

My first payment was also late, about 2-3 months due to problems with Fortis Bank. There was also a question of 7000zl that the developer said we owed, but when we sent emails asking them to clarify what this related to we did not receive an answer, same old problem where there was a complete breakdown in communications !We sent numerous emails without any relpy. We said we would happily pay the 7000zl once they could tell us what it pertained to as we believed we had paid the correct amount. It turned out that it was something to do with the exchange rate of swiss francs, and when Fortis Bank sent the agreed amount there was a shortfall of 7000zl. It was only when my wife was in Warsaw and went directly to the Bank that she sorted out the problem - it could so easily have been sorted earlier if there was proper communication between the Banks, Wilanow Investments and investors. When my wife was in Warsaw (2 weeks ago) she went to see the development, and was told the handover would not take place till the end of the year , but no definite date was given. When I called Property Secrets before my wife flew out, I was told it would be ready in October ! I have also received letters from Fortis Bank asking when the Final Purchase Contract will be signed - we have asked Wilanow Investments to provide the Bank with this information but to date they have not managed to do this. Fortis Bank are saying they could terminate our mortage if this is not dealt with soon. As a result I am flying over to Warsaw this Thursday and staying for 10 days, hoping to sort these matters out. Also I will go to the Property Show this coming weekend in Warsaw - as you can see this experience has not put me off looking for further property investments in Poland :o) Anyone else planning to be in Warsaw between 29th Sept and 7th Oct ? Olek