Attorney escrow services
An escrow of the purchase price protects both buyer and seller. The money sits in a dedicated attorney escrow account and is released only once the conditions agreed in the escrow agreement have been met. We act for clients from České Budějovice, South Bohemia and across the Czech Republic.
The buyer pays safely, the seller is sure to be paid
Attorney escrow solves the basic problem of every property transfer. The buyer does not want to pay before becoming the owner, and the seller does not want to transfer the property without certainty of payment. The buyer therefore deposits the purchase price in escrow, and the seller knows the money exists and is tied up. We release it only when the conditions set out in the escrow agreement are met, typically the registration of the buyer’s ownership in the Land Registry.
Attorney escrow is governed by Sections 52g to 52k of Act No. 85/1996 Coll., on the Legal Profession. We may accept funds only by bank transfer to a special account designated “advokátní úschova” (attorney escrow). Each account holds only one escrow at a time, and every escrow is recorded in the Electronic Escrow Register kept by the Czech Bar Association.
How the escrow works, step by step
Under the agreement, the escrow can also be used to repay the seller’s loan directly to the bank so that the mortgage is discharged, or to pay the estate agent’s commission. A filed application does not mean a completed registration, which is why we tie the release to the actual state of the Land Registry, not to the mere filing.
How we protect the money in escrow
Each escrow has its own account, which does not change during the escrow. You will never receive an instruction from us to change the account number; if such an e-mail arrives, it is a fraud. Both the bank and the Czech Bar Association send the parties confirmations of the escrow and of every transfer, so you have control independent of us. Fulfilment of the release conditions is checked by three different people and the payment is approved by the managing director of the firm.
What the escrow costs and what to prepare
A complete property transfer with attorney escrow, covering the purchase agreement, the escrow agreement and the Land Registry application, is available at a fixed price in our online legal services, where you can order it directly. The Land Registry fee is not included. If you only need an escrow for an agreement that is already drafted, we will quote the price in advance.
To get started, send us the reservation or purchase agreement if it exists, an extract from the title deed, details of the parties and information on financing, especially the buyer’s mortgage and any mortgage over the property. If the purchase agreement was drafted by an estate agent, we review it and align the escrow agreement with it.
Frequently asked questions about attorney escrow
What does an attorney escrow cost?
The fixed price of a complete property transfer with escrow, including the purchase agreement, the escrow agreement and the Land Registry application, is listed in our online legal services. An escrow for an agreement that is already drafted is quoted individually in advance.
How long does the money stay in escrow?
Usually until the buyer is registered in the Land Registry, which means a matter of weeks. The Land Registry may approve the registration no sooner than 20 days after notifying the owner that proceedings have begun (Section 18(1) of the Land Registry Act). The exact moment of release is set by the escrow agreement.
How can I verify that the escrow really exists?
Once the escrow is set up, the bank holding the escrow account and the Czech Bar Association will both send you an electronic confirmation. You will also receive a confirmation of every transfer from the account, so you do not have to rely on our word alone.
What if the transfer falls through?
The escrow agreement also covers the situation where the release conditions are not met, for example if the Land Registry rejects the registration or a party withdraws from the purchase agreement. The money is then returned to the depositor in the manner the agreement provides.
Can the bank pay the purchase price from a mortgage?
Yes. The purchase price may arrive in the escrow account in instalments, from the buyer’s own funds and from a loan. We align the mortgage drawdown conditions with the escrow agreement so that the individual steps follow on from each other.
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