Notarial deposit in property purchase transactions

Want to acquire a property, but the fear of losing the funds you have paid in before you receive the title deed keeps you awake at night? A notarial deposit is one of the tools that significantly increases the security of a transaction to buy a flat or a house. In this article we take a closer look at how a notarial deposit works and its advantages.

What is a notarial deposit?

A notarial deposit is a form of transaction security in which the buyer pays funds into a special deposit account run by a notary. The notary holds the funds until all the conditions of the transaction have been met, e.g. the entry of the ownership right in the land and mortgage register (księga wieczysta) in favour of the buyer. A record is drawn up when a notarial deposit is received. This document contains information such as:

• the date of receipt;
• the details of the person depositing the funds;
• the planned date for release of the subject of the deposit;
• the first name, surname and place of residence of the person collecting the deposit;

A notarial deposit is released only against a receipt.

Costs of a notarial deposit

A fee is charged for a notarial deposit, and its amount is strictly regulated by law – specifically by the Regulation of the Minister of Justice on the maximum rates of the notarial fee schedule. The cost depends on the value of the funds held and is calculated as half of the maximum rate, according to the following rules:

• up to 3,000 PLN – 100 PLN,
• over 3,000 PLN up to 10,000 PLN – 100 PLN plus 3% of the excess over 3,000 PLN,
• over 10,000 PLN up to 30,000 PLN – 310 PLN plus 2% of the excess over 10,000 PLN,
• over 30,000 PLN up to 60,000 PLN – 710 PLN plus 1% of the excess over 30,000 PLN,
• from 60,000 PLN to 1,000,000 PLN – 1,010 PLN plus 0.4% of the excess over 60,000 PLN,
• from 1,000,000 PLN to 2,000,000 PLN – 4,770 PLN plus 0.2% of the excess over 1,000,000 PLN,
• over 2,000,000 PLN – 6,770 PLN plus 0.25% of the excess over 2,000,000 PLN, up to a maximum of 10,000 PLN, and for persons in the first tax group – no more than 7,500 PLN.

Is it worth opting for a notarial deposit when buying a property?

A notarial deposit is not mandatory, but it provides security for both parties to the transaction. The seller need not worry that the buyer will be unable to pay for the property by the agreed date. The buyer, in turn, knows that the money will be passed to the seller only after the agreement has been concluded and ownership of the property transferred.

Summary

A notarial deposit is an effective tool that increases the security of a property purchase transaction. Thanks to it, both parties can feel more confident, because the funds and the ownership rights will be properly protected until the agreement is finalised.

Are you interested in buying a flat? An estate agent in Katowice will help you avoid unnecessary risk and ensure the transaction goes smoothly. Get in touch with me, then, to receive professional support and advice.