Introduction > Notary´s Agenda > Notarial escrow

Notarial escrow

Notarial escrow or notarial deposit is a legal instrument to protect all parties of a purchase contract. It prevents the risk, which may arise for the buyer, who had paid a purchase price, but has not become a legal owner of the property, or the seller, who had disposed of his/her title to the property, but has not been paid the purchase price.

A notary drafts the agreement to which the parties are the notary, the buyer and the seller. It contains the purchase price and the way it will be handled, ie the amount to be paid to the seller, to an intermediary (e.g. a real estate agent) or a bank and the inland revenue.

The notary guarantees that the purchase price is deposited on his deposit bank account. Our notary's office also guarantees that the owner of the sum will receive interest on the sum deposited. In case of any damage to the sum (e.g. of a bank collapse) the notary guarantees full compensation paid from the notary's professional insurance.

Further information on notarial escrow is on the web site of The Society of Notaries of The Czech Republic www.nkcr.cz (Notarial Services/Notary Escrow).