Escrow account and its opening

Recently, in July 2014, the Civil code of the Russian Federation was introduced a new type of contract between the Bank and the citizen - escrow account. This agreement is created for the account or block received from the owner (depodesta) funds with a view to their transfer to an individual (beneficiary) when the manifestation is considered in the Treaty grounds. To resort to such Treaty is possible in various cases. The most common cause - the purchase and sale of real estate.

Despite the popularity of law abroad, in Russia, the Treaty accounts for ecsro not received wide popularity. There are several reasons, but all in good time.

What is the agreement on escrow account

Otherwise called the "trust account agreement". The essence of it in simple language is to transfer debtor's funds to a third party, the counterparty (eksrou-agent) prior to the execution by the lender of certain conditions specified in the contract. Such a transaction involves a tripartite relationship, and the contract generally is issued in three copies.

The Person involved in the transaction: ecsro-agent (typically a Bank), the depositor and the beneficiary (the one to whom the money belongs). In practice, it is the beneficiary receives the greater power in the transaction and is able to influence its outcome.

Thus, the contract of the escrow account increases the confidence that both parties will get what they expect. In an extreme case, if part of the deal is not met, then the debtor has the chance to recover some of the funds.

When it is convenient to use escrow agreements

Bank escrow account can be open for many reasons. Let's briefly review what kind of surgeries are most popular.

1. The Transaction associated with the acquisition of citizen property.
2. The Payment of property taxes or other property insurance.
3. Depositiona valuable documents and papers.
4. Reservation amounts for the purchase of corporations and companies.
5. Storing the deposits.

Earlier, the escrow is used via foreign banks. Since the beginning of XXI century, this Treaty has received well-deserved popularity not only in European countries and the United States, but also States eastward: China, Mongolia and Japan. Now all these operations are carried out by major Russian banks: Sberbank, ROSBANK, etc.

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Features of the agreement for escrow

Since the establishment of escrow accounts is a large financial institution, all three parties can face some difficulties, which is to be prepared.

The agreement covers the possibility of change: as agreed by the parties (article 450 of the civil code), by a court decision (article 450 of the civil code), due to significant changes in the transaction (article 451 of the civil code)

Section 1 of article 860.10 - the only reason for the expiration of the contract - the expiry of the transaction. Also termination of the contract possible in recognition of a depositor or beneficiary incapable, partially incapable, missing, in case of liquidation of a legal entity.

If escrow agent is bankrupt, the depositor stands in the register of creditors, if the conditions of the contract is made, and the beneficiary, if not executed.

Knowing these details, you should not be afraid to open escrow account.

How to open an account?

To Open an escrow account now offer various banking organizations. The appointment to act as agent is allowed not only legal. persons or IP, but physical as well. The conclusion of the contract consists of three stages:

1. Drafting and signing of the contract on three sides.
2. Check the Bank account. The carrying amount of escrow account is opened in a separate account.
3. Accommodation on account of the agreed amount of money, serving as a subject of the agreement.

A Bank or other Trustee guarantees the blocking of funds to the performance of the agreement.

Open education

As of 2017 escrow account in the savings Bank to open the can. The implementation of the Treaty occurs through a subsidiary of community PJSC "Sberbank of Russia" and ZAO "Sberbank-AST". And you can place a deal in the online mode that saves time.

The Scheme of escrow

Before entering into the transaction, it is useful to know the algorithm by which it occurs. He's not that complicated:

1. The seller and the buyer decide to enter into a contract and address to a third party - the escrow agent.
2. The Agent takes care of the paper work: conclusion of the contract on the basis of instructions and wishes of the beneficiary and depositor, and registers a new account.
3. The account is kept cash or cash equivalent resources to the execution of the agreement.

Before the end of the transaction, the account is completely locked. After the execution of the terms of the contract, the beneficiary receives the amount from the account. As soon as the funds are transferred from the account, the intermediary (agent) takes responsibility to close the contract.

Escrow and letter of credit is that expensive, what are the prospects?

Many entrepreneurs are concerned with the question whether the escrow is more expensive credit (even a single financial contract assumed by the banking companies on behalf of the debtor). At the moment, most financial experts do not exclude growth of prices on escrow in comparison with established credit. However, approximately with the same probability and may fall due to guarantees on deposits offered by the banks.

Today, the escrow account will cost the parties 2 500 R. the change in the terms of the contract - from 500 to 2 500 roubles, depending on degree of importance and volume. In this case the Bank receives no remuneration from the escrow funds.

On the other hand, the letter of credit is strictly regulated by law and does not imply initiative and the escrow account is a relatively new phenomenon, enables the addition of various addenda to the agreement, correcting it, bringing in an intermediary individuals, etc. This aspect is very convenient for many financial entrepreneurs.

Also in the letter of credit Bank employees do not bear serious responsibility for the state funds, therefore, limited to formal, not always attentive, checking documents. In the case of large transactions, this can have a detrimental result on one or both sides. However, when making a escrow, the Bank bears a heavy responsibility for the safety of funds and all documents are checked clearly, and properly.

The Prospects for such accounts in Russia

In the near future, an escrow account can be widely spread on the territory of Russia, which would entail raising the funds for the contract.

However, economists believe that prices can vary widely depending on the complexity of the relationship. Experts are of the view fares in escrow may increase or decrease due to the type and complexity of the transaction, and the amount of funds on the account.

Since the escrow account not so distributed, the rates on it low. In the future, with the development of this orientation of the banking system, prices can rise significantly.

Positive and negative aspects of escrow

Every transaction has its pros and cons, escrow account - no exception. Despite all the convenience, there are to this day unresolved questions.

To begin with the advantages. This could include minimum paper work compared to the credit and financial risks. Contacts with the scammers completely excluded due to the blocking account, which gives the guarantee of a wholly commercial transaction. Also in the case of failure to comply with the terms of the agreement may prompt termination of the transaction.

The disadvantages of such a system can be attributed to the necessity of cooperation with an intermediary, the Bank or escrow agent, which leads to additional costs discussed above. Besides, at the moment in Russia the choice of companies willing to engage in such mediation, a little, that they can establish a monopoly on fares escrow.

It is also Worth noting that at the present time in the Russian legislation there are no significant differences between escrow and letter of credit, but there is a prospect of their appearance with the first distribution.

Nominal and escrow - what are the differences?

The nominal account and escrow account is the types of Bank obligations in the modern world. A nominal account is opened by the guardian for obtaining social benefits and the opportunity to spend it on a child without reporting to the authorities. Also, this account is used for the calculation with the purpose of the detention of incapacitated people of limited competence.

And expense transactions are in any event only under the supervision of parent, guardian or custodian. The representative can draw up a second account for the automatic accrual of funds for social services. security.

Escrow account acts the complete opposite. If the nominal funds are received to fulfill the terms of the contract - the contents of the incapacitated citizen, to receive funds from escrow, the terms of the contract it is necessary first to execute.

Thus, the opening of an escrow account is a secure and modern method of concluding a major transaction related to real estate, securities, insurance payments, etc. on the part of the escrow agent ensures complete security and inviolability of the funds at the time of the transaction that is carried out by making a new account. Intermediaries can act as Russian banks and individuals, and foreign companies. Moreover, the involvement of foreign companies is stronger than common in the world, especially in the East: China, Mongolia, Japan etc.