HSBC Escrow Account
Escrow account is a special bank account that serves for secure settlements of real estate sale and purchase transactions between the parties (Buyer and Seller).
With the Escrow account, you will get:
Ideal for secure settlements during real estate sale and purchase transactions
No monthly service fee
Available in AMD
No requirement for account minimum deposit
Things you should know
Real estate Buyer and Seller decide on terms of Escrow amount payment, the following options apply:
- Paid to the Seller
Within the time period stipulated under the Escrow Agreement upon presenting to the Bank the Buyer's ownership certificate to the subject property or one copy of the real estate notarized Sale and Purchase Agreement; or
- Paid to the Buyer
In case of the failure to present the mentioned documents to the Bank within the term set out under the Escrow Agreement, or in the event an original document issued by the State Committee of the Real Estate Cadastre on rejecting the Buyer's right to the Property arising out of and in connection with the Sale and Purchase Agreement is provided.
A service fee in the amount of 0.5% of Escrow amount (minimum AMD 100,000, maximum AMD 500,000) is charged for opening an Escrow account.
No interest rate is calculated on the funds available on the Escrow account.
Deposit compensation guaranteed limits
The monetary funds available on the bank accounts are guaranteed by the Deposit Guarantee Fund of Armenia in accordance with RA Law on Guaranteeing Compensation of Bank Deposits. Amounts of guaranteed deposits defined by the Law are as follows1:
- If you have only dram denominated bank deposit in the same bank, the maximum amount of the guaranteed deposit is AMD 16 million
- If you have only foreign currency denominated bank deposit in the same bank, the maximum amount of the guaranteed deposit is AMD 7 million
- If you have dram and foreign currency denominated bank deposits in the same bank, and the size of the dram denominated deposit exceeds AMD 7 million, only up to AMD 16 million of the dram denominated deposit is guaranteed
- If you have dram denominated bank deposit and foreign currency denominated bank deposit in the same bank, and the dram denominated bank deposit is less than AMD 7 million, subject to guarantee is the full amount of dram denominated bank deposit and the foreign currency denominated bank deposit in the amount which is equal to difference between AMD 7 million and the reimbursed dram denominated bank deposit.
The funds available on Escrow account are not subject to pledge, attachment (be placed on hold), be levied against Customer’s obligations, with the exception of cases envisaged by RA Civil Code.
1For more details, please visit www.adgf.am , the official web site of the Deposit Guarantee Fund of Armenia.
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Last updated on: 28.04.22, 08:13