When buying property, you can use escrow accounts

When concluding contracts for the purchase and sale of real property that are subject to notarial certification, the buyer may incur problems by depositing money in the notary’s deposit.

To carry out such calculations, a notary opens a separate current account for settlements under sale and purchase agreements between notary’s clients – individuals, including an amount exceeding the limit set by the National Bank for cash payments between individuals (Section 4.8 of Chapter 4 of the Instruction on the Procedure opening, use and closure of accounts in national and foreign currencies). However, such a method for notaries is unpopular.

There is an alternative way to implement such calculations, introduced by changes in civil law, are escrow accounts, the opening order of which has been established by chapter 23 of the said Instruction. Under the conditional storage (escrow) account, only operations are performed to credit the bank with funds received from the account holder and / or from third parties that, when the grounds specified in the contract of the conditional storage agreement occur, are intended for transfer to the beneficiary. The regulator explained that individuals (residents, non-residents) can make settlements under contracts for the sale and purchase of real estate.

A corresponding explanation is provided in the letter of June 26, 2018 No. 57-0009 / 35264