Starting April 1, 2026, settlements for the sale and purchase of real estate and certain vehicles no more than 10 years old will be carried out electronically only through banks and notaries.
Now, the practice of transferring money from hand to hand will be abolished - the funds will first be stored in an escrow account at the bank and transferred to the seller only after the contract is confirmed.
What is an escrow system?
Escrow is a special bank account that monitors settlements between the buyer and the seller.
How does the process work? Step by step:
1. The buyer applies to the bank.
After the agreement on the house or car, an application is submitted to the bank and all information is entered.
2. The bank opens an escrow account
This is a special account where money is kept temporarily, ensuring the security of both parties.
3. The buyer places the money in an escrow account.
If a purchase is made on credit, the bank will send an electronic notification to the notary.
4. The parties shall apply to a notary.
The purchase and sale agreement is submitted for registration.
5. The notary verifies the availability of money at the bank.
If there are no funds in the account, the contract will not be approved.
6. The notary shall certify the contract.
From that moment, the agreement will officially enter into force.
7. The bank transfers the money to the seller's account.
This is usually done automatically on the same day or the next business day.
8. The seller can freely use the money.
It is possible to withdraw funds in cash or keep them in an account.
Which vehicles are covered?
The following categories with a production date of no more than 10 years:
M - passenger cars and buses
N - trucks
O - trailer and semi-trailers
G - SUVs (4×4)
That is, practically all types of modern vehicles fall under this procedure.
An important aspect
If the notary fails to certify the contract, the buyer may receive a full refund of the funds in the escrow account. That means the money is safe.
Bank Information Service
See also
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Specialists and scientists delivered reports on the topic, providing a detailed explanation of the essence and significance of the important ideas and initiatives put forward in the President's speech.
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