Zaliczka or zadatek, and why you should know the difference.

The upfront payment is one of the most crucial aspects of the deal when buying a property in Poland, or elsewhere. On the Polish market, there are two types of upfront - zaliczka or zadatek. They differ significantly, and you must be aware of those differences to avoid any unpleasant surprises.

Let's start with zadatek. It is a specific form of the upfront, regulated by the Civil Code (art. 394). In case the transaction is not finalized due to a fault from one of the sides, the side at fault has to pay, the buyer loses the amount of zadatek paid, the seller should pay double that amount.

Using zadatek gives both sides more security regarding the transaction. The buyer is more sure that the seller won't sell the property to another party, and the seller that the buyer won't suddenly resign from the deal. However, it might be problematic for those who plan to buy the property via a mortgage, as in case banks would refuse it, the seller might want to keep the upfront. Hence, when applying for a mortgage and paying the upfront as zadatek you should clearly state that mortgage refusal would mean its returnable. Unfortunately, not all sellers would agree to that.

Zaliczka on the other hand is more flexible. Whenever the transaction is canceled, the seller should give it back to the buyer, regardless of the reason, unless there was some specific agreement stating otherwise. Zaliczka gives more flexibility than zadatek, but it also less security. Not only the buyer can cancel the deal, but also the seller can choose to sell to someone else without notice. When applying for a mortgage, this might pose a risk of losing time and money - let's say, you paid for the property appraisal required to proceed with the application, but the seller found a cash buyer or someone willing to pay more and cancels the transaction with yourself.

Given that, some sellers and buyers prefer to mix zadatek and zaliczka. For example, making 5 thousand as zadatek, just to make both parties more tied to the deal, and the rest of the upfront as zaliczka. The options are virtually limitless, and as in any transaction, are a subject of negotiation between both sides.

Please remember you can always consult those issues with us as a part of our mortgage assistance in Poland.

Best regards,
Loan-brokers.pl Team

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