Only Those With Strong Nerves Should Consider Investing in Pre-Built Condominiums: A Lesson From Duna Terasz Grande Scandal
The controversy surrounding the Duna Terasz Grande (DTG), the largest condominium project in Hungary, has highlighted the vulnerabilities of inexperienced buyers in such residential developments, despite their legal protections as consumers.
The government, which claims to be family-friendly, has however, not taken action in their favor.
János Lázár, the Minister for Construction and Transportation, did not rush to reassure nearly 1,500 buyers affected by the DTG project, who have been waiting for more than a year to resolve their issues.
The deadlock has been caused by a financial dispute worth billions of forints between the developer and the contractor, trapping the buyers who were unable to move into their apartments despite having paid for them. The situation was worsened when OTP bank suspended loan disbursements due to the ongoing dispute.
On March 25th, a court ruling mandated KÉSZ Zrt., the main contractor, to hand over the DTG residential park to the similarly named developer firm. This ruling theoretically removed the barriers to the buyers moving in, also allowing for the disbursement of loans necessary for the final installment of the purchase price. On Thursday, 24.hu learned that the constructors had left the premises, handing over the keys to the Duna Terasz Grande Ltd., the developer, and OTP bank informed the affected residents that the loans would be disbursed.
The saga is not over yet, as the financial dispute between the developer and the contractor continues.
Nevertheless, the story serves as a cautionary tale, suggesting that state intervention might have been the only viable solution to such a significant problem. The government's claim to consumer-friendliness is disputed by its inaction, as highlighted by the Finance Ministry's recent statement boasting about the government's family support policy, which has reportedly provided more than 267,000 families with 840 billion forints for home creation since 2016.
János Lázár, the Minister for Construction and Transportation, did not rush to reassure nearly 1,500 buyers affected by the DTG project, who have been waiting for more than a year to resolve their issues.
The deadlock has been caused by a financial dispute worth billions of forints between the developer and the contractor, trapping the buyers who were unable to move into their apartments despite having paid for them. The situation was worsened when OTP bank suspended loan disbursements due to the ongoing dispute.
On March 25th, a court ruling mandated KÉSZ Zrt., the main contractor, to hand over the DTG residential park to the similarly named developer firm. This ruling theoretically removed the barriers to the buyers moving in, also allowing for the disbursement of loans necessary for the final installment of the purchase price. On Thursday, 24.hu learned that the constructors had left the premises, handing over the keys to the Duna Terasz Grande Ltd., the developer, and OTP bank informed the affected residents that the loans would be disbursed.
The saga is not over yet, as the financial dispute between the developer and the contractor continues.
Nevertheless, the story serves as a cautionary tale, suggesting that state intervention might have been the only viable solution to such a significant problem. The government's claim to consumer-friendliness is disputed by its inaction, as highlighted by the Finance Ministry's recent statement boasting about the government's family support policy, which has reportedly provided more than 267,000 families with 840 billion forints for home creation since 2016.
Translation:
Translated by AI
