A new procedure is being prepared to further streamline settlements in the sale and purchase of real estate, vehicles of categories M, N, O and G, which are no more than ten years old, and special vehicles. This is a draft Regulation that establishes the rules for the exchange of electronic data between notaries and banks, with one main goal: to ensure that the money is safe and the contract is transparent.
According to the draft, after the parties to the contract reach an agreement, the buyer or his representative applies to the bank, opens an escrow account and places the funds under the contract in this account. An important point: a separate escrow account is opened for each purchase and sale contract. That is, there is no “putting everything in one bag”, each transaction is monitored separately.
Before approving the contract, the notary sends an electronic request to the bank through an automated information system. In this case, the escrow account is checked in real time whether there are funds equal to the contract amount. If the account is closed or there are insufficient funds, the notary refuses to approve the contract. Therefore, it is impossible to transfer the document with the words “the money will come later”.
After the contract is approved, the notary sends an electronic message to the bank about this. After that, the bank automatically transfers the money in escrow to the seller’s account. The logic here is simple: if the contract is not approved, the money will not go to the seller, if approved, the money will go without delay.
Another important point: if the contract is not approved, the funds in the escrow account are returned upon the application of the buyer or his representative. That is, the transaction did not take place - the money will not "hang around".
It is also planned that the Ministry of Justice and the Central Bank will monitor the implementation of the requirements of the regulation. This should ensure that the system works and the rules do not remain on paper.
In short, if the project is implemented, the movement of money in the purchase and sale of real estate and certain vehicles will be much more protected and controlled: first, the money is in escrow, then verification - in real time, and only then the contract and payment. This is the format that will transfer "trust" in transactions from paper to practice.
Read “Zamin” on Telegram!
