Escrow is a guarantee by the bank of the security of the sale-purchase transaction, which allows the buyer to pay the price only after the registration of the right to the purchased good.
ESCROW service
Efficient
The certainty that the funds will be used only for the purpose set forth in the Agreement.
Advantageous
ZERO commission for account opening and administration.
Secure
Maximum security for the parties to the sales agreement.
The escrow service ensures that the Bank keeps and blocks an amount of money (the escrow amount) in a temporary deposit account until the Buyer acquires the right of ownership of a good, while ensuring that the amount is used only for the purpose set in the escrow agreement.
In this way, this service offers the highest safety to the contracting parties, ensuring that the Seller obtains the price of the sold good, and the Buyer acquires the right of ownership of the good concerned.
How does it work:
1
A decision is taken on the conclusion of a sale-purchase transaction.
2
The Buyer and the Seller agree on the terms of the transaction, and the Bank (the escrow agent) draws up the escrow agreement and opens the escrow account.
3
The Buyer deposits into the escrow account the agreed amount under the escrow agreement (the sale price of the good).
4
The Seller fulfils the terms and conditions of the escrow agreement.
5
The documents certifying the transfer of the right of ownership of the good to the Buyer are submitted to the bank.
6
The escrow agent (the bank) transfers to the Seller the amount set in the escrow agreement.
Once the money is deposited in the account, it is blocked and will be issued by the Bank:
- To the Seller, only if supporting documents are submitted, which confirm the transfer of the right of ownership of the good to the Buyer. In case of real estate, the Excerpt from the Register of Real Estate, issued by the Public Services Agency , shall be submitted.
- To the Buyer, only if the transaction has not been completed.
Advantages:
Customers are offered a secure and efficient payment method.
Zero commission for account opening and administration.
No risk of failure to perform the obligations.
No mistrust between business partners.
The Seller is guaranteed the collection of the funds agreed and deposited in the escrow account.
No risk of receiving fake banknotes, as the payment is made by transfer from the ESCROW account to the current account of the Seller.
The funds are used only for the purpose set in the agreement.
The Buyer is guaranteed the recovery of the entire amount available from the ESCROW account, if the transaction has not been completed for some reason.
Individuals:
Identity documents (in original) of the depositor ( buyer) and beneficiary ( seller).
Beneficiary ( seller) shall submit the documents of ownership of the good that is the subject of the sale-purchase transaction.
Bank may request other documents, depending on the nature of the transaction.
Legal entities – if they have a current account with the bank:
Identity document (in original) of the person authorized to conclude the escrow transaction.
Other documents, upon request.
Legal entities – if they do not have a current account with the bank:
Additionally, documents necessary for opening the current account shall be submitted.
Beneficiary ( seller) shall submit the documents of ownership of the good that is the subject of the sale-purchase transaction.
If a legal representative concludes the transaction, the following documents shall be submitted additionally:
Notarized power of attorney (if the power of attorney is issued by an individual) or the power of attorney drawn up in writing, with the applied stamp of the legal entity (if the power of attorney is issued by a legal entity), or the notarized copy of the power of attorney.
Notarized copy of the identity document of the person granting powers.
Fee for drawing up the ESCROW agreement:
In MDL – 0.5% of the agreement amount; minimum MDL 1,000, maximum MDL 6,000
In foreign currency – 0.5% of the agreement amount; minimum EUR/USD 100, maximum EUR/USD 500
For secured loans issued by the Bank – 0.1%; maximum MDL 1,000
Within the ‘Prima casa’ State Program – FREE OF CHARGE
