Buying real estate without a mortgage seems simple until the question arises: when to pay? The buyer prefers payment after signing the notarial deed, when they are sure they have become the owner of the property. The seller prefers payment before, because upon signing the contract, they lose ownership and the certainty that the price will actually be transferred to them. Both parties have concerns and do not want to take risks.
Fortunately, there is a solution that provides peace of mind and security for both: a notarial deposit. It is a secure method of payment for every transaction.
What does payment via notarial deposit entail?
The buyer, before concluding the notarial deed, deposits the money into the notary's bank account and instructs the notary to pay it to the seller only after the sale agreement is signed. The seller, when entering into the agreement, is guaranteed that the money to pay the price is secured in the notary's bank account.
After concluding the agreement, the notary pays the due amount to the seller. This way, neither party needs to fear dishonesty – the notarial deposit acts as a notarial guarantee of payment.
How much does it cost?
For securing payment through a notarial deposit, the notary is entitled to remuneration in accordance with the regulation of the Minister of Justice. These costs are disproportionately lower than the risks they mitigate and the potential costs of pursuing claims in case of non-payment.
Who bears the costs of the deposit?
A notarial deposit protects both parties from payment-related risks, so the parties can share the cost of this solution. This is a matter to be freely agreed upon by the parties – whether one of them pays, or they split the costs.
Doesn't a quick bank transfer during the notarial activities solve this problem?
Even if the buyers have the option to pay via a so-called quick transfer (which often proves difficult with such large amounts), the dilemma of the timing of the payment remains unresolved: whether the transfer should be ordered before the signatures are placed, or after.
Is it worth using a deposit?
Definitely yes. Selling real estate is, after all, one of the most important transactions in life. A notary, as a person of public trust, will ensure the security of your transaction.