When preparing a real estate purchase contract, it is very important to agree on how to pay the purchase price. Custody of purchase price protects buyers and sellers. The purchase price is deposited before the transfer of the ownership right, which protects the seller from a situation when the ownership of the property changes to the buyer, but the buyer would refuse to pay him. It also protect the buyer, for example if the buyer is not registered in the Land Register as a new owner of the property, for instance, due to a design error or an error in the contract that has not been repaired, the money will be refunded from the custody to the buyer.
There are three ways to store the purchase price.
- Attorney custody
- Notarial custody
- Bank escrow
Under no circumstances shall the custody of the purchase price be deposited on the account of the real estate agency or real estate agent. The broker recommends the custody of the purchase price at a law firm that is registered with the Czech Lawyer’s Association, is properly insured, and which prepares other documents for the sale transaction as well.
- The broker will set up the custody of purchase price within the commission.
- The broker will prepare the custody of purchase price agreement within the commission
- The fee for custody of purchase price shall be paid by a buyer, seller, or split the cost equally.