In connection with the amendments to the Law on the Basics of Notaries, which were made several years ago, it became possible to carry out all kinds of settlements between the parties on real estate transactions through a notary deposit account. In this article, we will consider this issue in more detail.
What are settlements through notary deposits?
In general, settlements through notary deposits are a mixture of operations that are carried out through a depository cell in a bank, and, moreover, through an irrevocable letter of credit. At the same time, flexibility was taken from depository cells in the framework of settlements, and openness was borrowed from the letter of credit. Actually, for this reason, such calculations have certain pluses and minuses that are inherent in both types of such mutual operations.
It’s quite simple to find a notary with a deposit account in St. Petersburg.
Many are still wondering why any means of transferring funds from buyers to sellers are generally required. They also ask why you can’t simply give this money back during the transaction. But professionals, along with experienced amateurs, already know the answer to this question.
What does a notary deposit account suggest?
What do the calculations look like?
At least one agreement in the chain must be notarized. It is worth noting that this requirement may vary between different notaries. And some of them may wish to certify all purchase and sale agreements that are involved in one transaction. The contract of sale prescribes a clause on mutual settlements between the parties through a notary's deposit account with a bank.
The parties draw up an agreement that is notarized. It describes all the nuances regarding upcoming payments. For example, it is indicated when, to whom, and besides, to which current account and in what amount the money will be transferred. Even cases of the occurrence of events within which the operation will be carried out are described.
The notary deposit account agreement is multilateral in nature, which depends on the number of recipients, and in addition, depositors of funds. In the role of the beneficiary's account, it is customary to indicate any in the selected bank of Russia. After signing all the necessary documents, buyers deposit funds into notary deposit accounts.
When to deposit funds?
You should pay attention to the fact that it is best to deposit funds to a notary’s deposit account precisely after the signing of agreements, as many banking institutions want to see the details of the signed documentation and carefully check the basis for making financial contributions. Theoretically, such a fact can cause alarm to the seller. In order to relieve tension, you can always agree on the submission of documentation for registering the transfer of law only after the receipt of funds on a notary's deposit.
Deposit funds
Deposits can be made by notaries by bank transfer from the account held by the buyer or by cash delivery to the bank. Against this background, the transfer of funds to the account is shareware, as some banking institutions may deduct a commission for technical work. Given this factor, it will be best to check with your bank at this time.
Immediately after the fulfillment of the conditions specified in the payment agreement, the party who wishes to receive the money contacts the notary, presenting him with documentation confirming the fulfillment of these requirements.
The notary, after checking the submitted documents, transfers funds to the account that was given in the agreement.
Notary deposit account in Alfa-Bank of St. Petersburg is very popular.
Does not take much time
As a rule, such an operation does not take much time, and the funds appear on the recipient's account on the next business day. The transfer of funds from a notary deposit is completely free. But the beneficiary’s banking institution may charge a fee for the actual withdrawal of cash from the account. Therefore, it is recommended to clarify this nuance in your bank immediately before the transaction, and if necessary, choose another financial institution.
After making the above payments, the buyer will receive a notary from the notary about the issuance of finance from the deposit. Such a certificate may replace a receipt from the seller.
Benefits of settlements through notary deposits
As can be seen from the above description, settlements through a notary deposit account have a number of different advantages. Especially the advantages are noticeable if you compare with settlements through bank cells, and even more so with transactions through letters of credit. For example, settlements through letters of credit are mostly not flexible:
- It is not possible to make payments for the alternative through them.
- There is no possibility of pledging commission to realtors.
- It will not be possible to carry out a deduction of funds for an extract.
For example, if a citizen wants to pledge part of his money for an extract, then this will be inappropriate, since the deducted part will still be transferred to the seller’s address simultaneously with the rest of the amount. In addition, in contrast, money from a notary deposit can be transferred at different times to recipients.
If we compare the deposit of a notary and a bank cell, then you can notice the following advantages of the first:
- Clear transparency of mutual settlements.
- The absence of any problems with receiving receipts from sellers.
- Lack of possible disputes about the key storage location.
- The ability to conduct notarization of a contract for the sale of or pledge of funds in one place.
- The absence of any problems with receiving funds in case of technical errors.
Opening a notary deposit account is a standard procedure. At the same time, the cost of settlements through notary deposits should be noted as a significant advantage. For example, in the transaction, along with the technical work for which the bank took the money, the buyers paid 3,700 rubles. At the same time, if the pledge takes place in a standard way, then three cells might need to be rented, as a result of which about 7500 rubles would have to be paid.
Disadvantages of settlements through a notary deposit
Unfortunately, in settlements through a notary deposit there are not only advantages, but also significant shortcomings. First of all, experts note insecurity. But we are not talking about the unreliability of a notary, but of a banking institution. That is, it refers to the fact that settlements through a notary deposit are inherently a deposit of funds into certain bank accounts. And this means that any possible problems associated with the bank’s license will certainly affect this account. That is, buyers can easily lose all the money that was deposited on notary deposits.
For this reason, when using this instrument of mutual settlements, it is extremely important to pay attention first of all to which bank the notary's deposit account is opened with.Preference should be given solely to those notaries whose account is opened with well-known, and in addition, reliable banks.
Notary Unreliability
No less disturbing minus is the probable unreliability of the notary public. From a theoretical point of view, absolutely no one prevents a notary from writing off all the money from the deposit for himself in his favor, in order to later escape. Of course, such a development of events is a pure criminal offense. And, nevertheless, theoretically it is also possible and it is not worth excluding such a situation. In this regard, among other things, it is also required to pay attention to the reliability of the notary public, his fame and reputation. It is most important.
Finding a notary with a deposit account in Moscow is quite simple.
Technical inconvenience of settlements through notary deposits
The following drawback will not be correctly attributed to the minuses, but most likely this is a certain technical point. For example, payment by deposit cannot be made at any notary. First of all, notaries do not have a deposit account number. And besides, not all of them are ready to contact with such mutual settlements. This is because in the framework of such operations there is too much responsibility, and the cost of work is extremely low. For this reason, most often, such calculations are considered as a kind of bonus from a notary public as a gratitude for the transaction from him.
And, of course, if there is no notarization of at least one agreement in the chain, then there will be no possibility of settlements through a deposit.
Clear instructions in the contract
Thus, attention should be paid to the need for clear instructions in the mutual settlement agreement regarding the fact that buyers can withdraw money from a deposit only in cases of refusal or absence of registration of transfer of ownership within a certain period of time. If this is not indicated, then theoretically, buyers can demand a refund at any time.
Despite a certain number of shortcomings, it is currently believed that settlements through a notary's deposit account in St. Petersburg or Moscow, for example, are a rather interesting and convenient tool that has already managed to find its niche, gradually gaining popularity on the site of the real estate market.
So, in the capital, you can contact the notary office of A.G. Salakhov at the address: Moscow, Sadovaya-Kudrinskaya St. 11 or the notary Ekaterina Olegovich Lexakova at the building 2, Dmitrovsky Lane, Moscow.
In St. Petersburg, you can go to the address: Central District, Liteiny Prospect, 38, 2nd floor. The service is provided by a notary Leontiev Evgeny Vladimirovich. Many residents of the northern capital recommend contacting Ulyanova Elena Sergeevna. Her office is located at: Kuznechny pereulok, house 4.
This has become especially relevant in connection with the latest changes in legislation, which forces citizens to make a large number of all kinds of transactions with certification of sales contracts with a notary. Many believe that if the banks that issue mortgage loans also begin to use this tool, then, due to its certain advantages, it can occupy a significant share among mutual settlements in real estate transactions.
Opportunity to save
In addition, the use of a notary deposit during real estate transactions gives citizens the opportunity to save, avoiding unnecessary risks, making this procedure safe not only for the buyer, but also for the seller. As for the clientele of the bursting banking institutions, for them a deposit can be a help in the framework of maintaining an impeccable credit history.