Between a Rock and a Hard Place: Money First or Notarial Deed?
Together with Ada Monika Chudzik, in the latest episode of the PrawoMocny vlog, we discuss the essential tools for securing real estate payment when the buyer has not transferred the funds before signing the agreement.
The Most Important Thing – From the Seller’s Perspective
The key concern for someone selling real estate is obtaining a guarantee that once ownership is transferred to the buyer, they will definitely receive payment for the property.
The Good Old Days…
Not long ago, real estate sales often involved buyers bringing suitcases full of cash (sometimes two!) to the notary. There would be a grand counting session, with the seller leaving with a suitcase of money and the buyer walking away with a notarial deed and ownership of the property. Everyone was happy. 🙂
Conflict of Interests
Times have changed… Today, buyers typically transfer the purchase price to the seller’s bank account after signing the notarial deed. The happy buyer now holds the notarial deed and ownership rights, while the seller is left with neither ownership nor money—only the hope that the buyer will pay within the agreed timeframe.
What if payment were made before signing the deed? In this case, the buyer might pray that the sale agreement takes place and that the seller doesn’t flee to Kamchatka with the money.
This creates a significant dilemma: whose interest—the seller’s or the buyer’s—is more critical and deserving of protection? Fortunately, there are legal solutions that address this issue without forcing one party to bear greater risk.
“Triple Sevens”
The first option is voluntary submission to enforcement based on a notarial deed (Article 777 § 1 point 4 of the Code of Civil Procedure, known as “Triple Sevens”). A notarial deed containing the debtor’s statement of voluntary submission to enforcement serves as an enforcement title. Once an enforcement clause is attached, it becomes an enforceable title, allowing the creditor to initiate enforcement proceedings without a lengthy court process.
Safe Money with a Notary
The second solution is to establish a notarial deposit, where the buyer deposits the agreed purchase price. Upon conclusion of the final sales agreement, the notary transfers the funds to the seller. If the sale agreement doesn’t materialize, the money is returned to the buyer’s account.
It’s worth taking advantage of these legal tools. We encourage careful and safe real estate transactions, and we’re happy to assist with the process. 🙂
We wish you many successful transactions and invite you to subscribe to our channel!
