ESCROW Service is a service provided both to individuals and legal entities. It supposes that the Bank keeps and blocks an amount of money in a temporary deposit account until the Buyer acquires the ownership title of the respective good, ensuring that the amount of money is used strictly according to its intended purpose stated in the ESCROW contract.
ESCROW Service is applicable in transactions related to the transfer ownership of the property (real estate) based on a sale-purchase agreement.
How does it work?
If two parties decide to enter into a sale-purchase agreement of a property, JSCB "EuroCreditBank" on customers' request, signs with the parties the ESCROW agreement indicating all conditions associated with the transaction and opens a special ESCROW account for the Buyer to deposit the amount of money related to the property's selling price.
The ESCROW account warrants the Buyer that he will not lose the money if the partner fails to meet his obligations.
Once the amount of money is posted in the ESCROW account, it is blocked and the money will be released by the Bank:
- to the Seller, only in case the latter presents supporting documents demonstrating the fact that the ownership titles passed to the Buyer. In case of immovable goods, an excerpt form the Register of Immovable Property issued by the Territorial Land Registry Office shall be presented.
- to the Buyer, only in case the transaction was not completed.
This way, this service provides the parties with a maximum of security, ensuring that the Seller obtained the price of the sold goods, and the Buyer acquired the ownership title for the purchased goods.
The advantages of the service:
- Offers the clients a safe and efficient payment system;
- No fee is charged for opening and managing the ESCROW account;
- Any risk related to not honouring the obligations is excluded;
- The lack of confidence between the business partners is eliminated;
- The Seller is ensured with regard to the cashing of money within the limits of the amounts of money available in the ESCROW account and according to the provisions stipulated in the ESCROW agreement;
- The Buyer is ensured with regard to the recovery of the entire amount available in the ESCROW amount in case the transaction was not finished for any reasons;
- The guarantee that the money will be used strictly according to its intended purpose;
- Eliminates the risks of using counterfeit money, as the payment is carried out by transfer from the ESCROW account to the Seller's current account;
- according banks tariffs
The necessary documents:
- individuals: to conclude the ESCROW agreement, individuals will present: the original identity card.
- the legal persons: to conclude the ESCROW agreement, the legal persons will present: the copy of the State Registry excerpt; the original identity card of the person empowered to enter into the ESCROW agreement the authorized person's decision on the sale-purchase agreement.
- the authorized persons : based on a proxy, the authorized persons will additionally present: the proxy signed by a notary (in case it is issued by an individual), or the proxy drafted and sealed with the legal person's stamp (in case the proxy is issued by a legal person), or the copy of the proxy certified by a notary.