Introduction
The essence of the notarial deposit is to secure the parties to the transaction in the case of the sale of real estate as to the payment of prices. The law provides the opportunity, but does not impose an obligation on the notary to perform this act.
What is a notarial deposit
A notary’s deposit is a special bank account opened by a notary, into which securities or money of the person making the transaction can be transferred. In real estate transactions, this is a very common procedure for cash transactions (those without credit). It is the safest form of entering into transactions of this type especially since the notary has civil and criminal liability.
Important information:
- Notarial deposit is a kind of confirmation that the buying party has the necessary funds for the transaction because the money that the notary transfers at a later time must be in the deposit account before the transaction, of which the notary’s office draws up a corresponding record of receipt of funds in the form of a notarial deed
- the transfer of ownership takes place with the signing of the notarial deed, so you do not have to worry that the buying party will not transfer after the sale agreement and you will be left without the property and cash
- immediately after signing the notarial deed, you are assured that the notary will transfer the funds to the correct account, of which he will prepare a withdrawal report with a confirmation of the transfer
- The cost of the deposit is relatively low in relation to the volume of transactions concluded
- according to the agreement of both parties, the deposit should be paid half each, but it is customary to cover this from the buying party, as with the rest of the other purchase fees
Summary
For cash transactions, I highly recommend my clients to use a notary’s deposit in order to properly secure the transaction and avoid unnecessary stress or worse – financial loss in the future. Many people are not aware of the existence of this type of solution, which is one of the safest for real estate transactions.
