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How to protect your money when buying a property

When we have a real estate transaction, it is good to know the sequence of procedures. It's the only way to be assured and protected by law.

Which comes first - the signing of a document or the payment of money? Here the notary plays a very important role and experts explain what it is.

The usual practice is to first make the payment by bank transfer and then go to the notary. At the notary are sign all the documents, but he does not attend the payment in the Bank.

In most cases, the transfer fees (local tax etc.) also have to be left to the notary and then he will deposit them.

A signed preliminary agreement is the basis for payment in the Bank, which entitles the buyer to declare it final. The payment order is issued by the Bank that the amount is credited to the account of the seller. The seller is signing at the notary that the amount on this deal is completely paid, unless there's a suspensory condition.

The registered title deed is given by the notary in a few days. This is because the entry in the registry Agency it takes some time. The notary is obligated until the afternoon of the same day to give the notary deed for registration.

Experts reveal that there is another method of payment - a special account (trust/ESCROW/account). This is when is conclude a tripartite agreement between the buyer, seller and the Bank in which the payments will be carried out.

In this type of accounts the seller may release the money only after the presentation of the registered title deed, and also if there are any other previously placed terms of service. In this case the Bank is the guarantor with a fixed commission, that the terms of the contract will be fulfilled, in order to effect payments.

There is one more option which consultant Mladen Sadinov often offers to its clients. When there is some sort of part-payment in cash, money are counted in advance by both parties and are then submitted to the notary. After passing the signatures and the registration of the deed, the amount is paid to the seller.

Of course, the responsible keeping of money must first be negotiated with the notary. The service is performed against a specific fee. That option, according to the consultant, gives a great deal of security for both sides.