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Notarial custody (escrow)
In notarial custody, the notary accepts money, a document, a security or another item permitted by law and deals with it as determined by the deed of custody and by law. Custody of the purchase price in a transfer of real estate is described separately.
What this service means
What can be placed in custody and how it works
Notarial custody can be used when the parties need to arrange the safe handover of money, a document or another item of value. The notary, as an impartial public officer, represents neither of the parties. The content of the custody and the manner of dealing with it must comply with the law and with the conditions set out in the deed of custody. The notary may accept into custody:
- money — into the notary's bank account designated in the deed of custody; the notary may deal with it only for the purpose of the custody,
- documents and paper securities — for example, until an agreed condition is fulfilled,
- wills — into custody with the notary,
- movable items — only in custody for the purpose of discharging an obligation between the parties (for example, in a commercial settlement).
The terms in simple words: the depositor is the one who places the item into custody; the recipient is the one to whom it is released once the condition is fulfilled.
Beware of confusion with other "escrows". Other entities also offer services described as "escrow" on the market. Such commercial escrow is not notarial custody — it is not covered by the legal regulation of notarial custody or the protection flowing from it (money in a special account with an impartial public officer, dealing with it only in accordance with the deed and the law). The only comparable alternative to notarial custody is a blocked (vinculated) account with a bank.
Buying or selling real estate? Custody of the purchase price in a transfer of real estate is a separate case described in detail — see the page on the transfer of real estate and custody. This page covers custody in general.
Procedure
How it usually proceeds
Agreement on the conditions. You agree on what is placed in custody and under what conditions it is released to the recipient (or returned to the depositor).
Deed of custody. The notary verifies identity and draws up a deed with the conditions of release.
Handover of the item. The depositor hands over the item — money to a special account, a document or an item physically to the notary.
Safe keeping. The notary holds the item as an impartial public officer.
Release. Once the agreed condition is fulfilled, the notary releases the item to the recipient; if the condition is not fulfilled, the notary returns it to the depositor as agreed.
Release is tied to fulfilment of the condition, not to a fixed number of days.
Let's arrange a meeting
Write to us or call — we will agree on an appointment and prepare a list of documents for your matter.
Do not send sensitive documents by ordinary e-mail without prior arrangement with the office.