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Escrow account: Types of possible transactions

Types of possible transactions

Within the timeframe envisaged in the Escrow Account Agreement the Buyer credits the Escrow account, whether in cash or by transfer, with the amount payable by the Buyer to the Seller under the Sale and Purchase Agreement (Escrow Amount), and the Buyer pays the Bank the service fee against the services provided under the Agreement.

Escrow amount may comprise the whole amount to be paid to the Seller by the Buyer under the Sales and Purchase Agreement or a part of it.

Escrow amount shall be disposed in the manner stipulated in the Escrow Account Agreement. 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.

No other banking transactions shall be executed on the Escrow account, unless otherwise defined by RA legislation.

Additional information on bank accounts is available under Terms and conditions.