CALL

Escrow account in the Czech Republic: For reliable financial transactions

We help open a secure guarantee account in the EU for your personal and business needs.

When it comes to major transactions, trust in the partner plays a key role. There is often a risk of non-fulfillment of obligations or payment delays.

Opening and managing escrow accounts under the control of lawyers, notaries, or banks will ensure maximum protection of your interests.

We offer:

risk minimization in major financial operations;
professional transaction support by experienced lawyers;
unconditional compliance with Czech legislation;
transparency and control at all stages of transactions.

The cost of NAWI’s services includes not only transaction support but also AML checks of the parties.

OUR ACHIEVEMENTS

Our rating on Google – 5.0

Award from the magazine The CEO Magazine

The first business AI assistant in the Czech Republic according to the magazine INNOVATION

Top 10 Business Development Companies in the Czech Republic by magazine PREMIUM GUIDE

Top 5 promising startups in real estate according to magazine REAL ESTATE BUSINESS

What is an escrow account?

An escrow account is a special bank account where funds are temporarily stored to avoid a conflict of interests until all conditions of the contract are met by the parties involved. The money transferred to such an account is under the control of an independent third party, in our case, a lawyer.

In global practice, escrow accounts are widely used to minimize risks in major transactions. For example, on Wall Street, escrow is traditionally in demand for mergers and acquisitions, and deals involving luxury real estate.

There are two main types of escrow accounts:

Money escrow account. Designed for depositing financial funds until the predetermined conditions of the transaction are fulfilled. Commonly used in real estate transactions, foreign trade operations, and in the processes of mergers and acquisitions.
Document escrow account. Used to ensure the safety and confidentiality of important documentation until the transaction is completed. This type of account can hold contracts, property rights documents, and other legal evidence, various types of securities.

Where is escrow most commonly used?

in real estate transactions;
in online trading of valuable goods (artifacts, jewelry);
in mergers, acquisitions, and business divisions;
to protect rights to inventions, patents, and startups;
in stock market transactions (storage of stocks, bonds, and other securities).

Who has the right to open an escrow account: trusted intermediaries

Only authorized persons and organizations that ensure the reliability and legality of transactions can open and manage an escrow account:

Banks. Traditional and most common escrow agents. Banks possess the infrastructure and experience necessary for the safekeeping of funds.
Lawyers, especially those specializing in real estate or corporate law.
Notaries. They can also open escrow accounts. The involvement of a notary gives the transaction additional legal force.
Licensed real estate brokers. In real estate transactions, they often act as escrow agents, as they are well acquainted with the nuances of such deals.

Each of the mentioned escrow agents has its own specific characteristics, so we choose the registration option for the escrow account based on the situation.

Get A consulation

Rights and responsibilities when using an escrow account

Every client has the right to independently choose where and how to store their finances, including the use of escrow accounts. No one can force a client to sign an agreement with a predetermined lawyer, notary, or bank, even when purchasing real estate through an agency.

Key points:

Clients may choose any lawyer, notary, or bank to open an escrow account.
All documentation regarding the client’s funds related to the escrow account is stored and provided to the client upon request.
All transactions involving client resources are recorded, and documents are stored for 10 years from the date the account is closed.
When concluding escrow account agreements, the lawyer, notary, or bank must specify the custodian in accordance with § 2 paragraph g) of Law No. 253/2008 Sb. “On the Prevention of Money Laundering and Terrorist Financing” and fulfill other duties prescribed by this law.

Documents required for opening an escrow account:

Escrow Agreement

Defines the terms of the transaction, rights, and responsibilities of all parties. Always necessary as it forms the basis for opening the account. Must include clear instructions for managing and releasing the funds.

Identification Documents of the Parties

Verify the identities of the participants in the transaction. Required in all cases to comply with anti-money laundering legislation. For individuals, this includes a passport; for legal entities, foundational documents and an extract from the Trade Register.

Documents Confirming the Origin of Funds

Prove the legality of the source of the funds. Necessary for large transactions or as required by the bank/lawyer. These documents can include bank statements, property sale contracts, inheritance documents, etc.

Documents Related to the Subject of the Transaction

Confirm ownership rights to the transaction object and provide essential information about it. Required depending on the type of transaction. For real estate transactions, a land registry extract is needed; for intellectual property, patents or copyrights; for businesses, financial statements.

Consent to Process Personal Data

Allows the use of personal information within the transaction. Always required as part of compliance with personal data protection legislation. Must be in written form and clearly outline the scope of information usage.

Documents Confirming the Authority of Representatives

Certify the right to act on behalf of a party in the transaction. Necessary if the transaction is conducted through representatives. Such documents include powers of attorney, board of directors’ resolutions, appointment orders, etc.

Safety at Every Step: The Process of Conducting Transactions via an Escrow Account

Document Preparation

Parties to the transaction sign necessary documents: the purchase agreement, escrow account agreement, and non-disclosure agreement. NAWI will assist you in preparing all documents and provide legal advice.

Fund Transfer

The buyer transfers the agreed amount into the escrow account opened in a reliable bank.

Informing the Parties

We will promptly notify the seller about the funds being deposited into the escrow account.

Condition Verification

Our specialists meticulously verify the fulfillment of all contractual conditions agreed upon by the parties.

Transfer of Ownership

After confirming that all conditions have been met, NAWI initiates the procedure for the transfer of ownership. For example, in real estate transactions, information about the new owner is entered into the land registry.

Funds Transfer to the Seller

After the successful registration of the ownership transfer, the funds from the escrow account are transferred to the seller’s account.

Important: Escrow accounts undergo mandatory AML checks. This ensures the legality of the funds received, eliminating concerns from the bank and governmental bodies regarding the legality of the money.

Get A Consultation

Key advantages of collaborating with NAWI:

Simple

Online service arrangements, access to notarial services without queues, and courier document delivery for client convenience.

Safe

Our independent consultants focus on protecting your interests, ensuring objectivity and a responsible approach to each transaction.

Cost-effective

You only pay for services actually provided; we guarantee the efficiency of your investments in our services.

Transparent

Continuous online access to the status of your case; we ensure openness and control over the process.

Our Cases

Client: NDA

Registration of a fund with variable capital

Client: NDA

Purchasing a real estate package for investment (cost 64,000,000)

Client: NDA

Legal support in real estate purchases, due diligence of the property, creation of contracts, escrow account

Client: NDA

Asset relocation to the Czech Republic, ensuring premium banking, compliance procedures, and investment project audits

What do our clients say about us?

Dmytro Taran

I recently had the pleasure of working with NAWI, and I couldn’t be more satisfied with the experience. From the very beginning, their team demonstrated exceptional professionalism and expertise. They are truly dedicated to delivering high-quality solutions tailored to their clients’ needs.

NAWI’s innovative approach and deep understanding of the industry set them apart from the competition. Their attention to detail and commitment to excellence are evident in every aspect of their work. Whether it’s project management, technical implementation, or customer service, they consistently exceed expectations.

One of the standout features of NAWI is their ability to communicate complex technical concepts in a clear and understandable manner. This makes the collaboration process smooth and efficient. Their team is always available to provide support and answer any questions, ensuring that projects are completed on time and to the highest standard.

In addition to their technical prowess, NAWI also prioritizes building strong relationships with their clients. They take the time to understand your unique needs and offer personalized solutions that drive success. It’s clear that they genuinely care about the success of their clients and go above and beyond to achieve it.

Overall, my experience with NAWI has been outstanding. I highly recommend them to anyone seeking top-tier services in their field. They are a true partner in success, and I look forward to continuing our collaboration in the future.

Thank you, NAWI, for your exceptional work and dedication!

Marsel Prokopev

Не первый раз убеждаюсь, что компании можно доверить решение даже самых сложных задач. При любом вопросе обращаюсь в NAWI для решения проблем с компанией, и вопросами взаимоотношений с партнёрами по бизнесу. Профессионалы, для них нет нерешаемых вопросов. Готовы найти максимально возможное выгодное для компании решении. Рекомендую!

Андрій Грицюк

Враження від зустрічі та роботі з компанією – найкраще! Суперпрофесійна консультація. Наполегливо рекомендую всім, кого цікавлять питання бізнесу в Чехії

Max Baikalov

Обратился в Nawi Europe по рекомендации друзей и остался очень доволен качеством предоставленных услуг. Особую благодарность хочу выразить Эдуарду за его профессионализм, внимание к деталям и искреннее желание помочь. Эдуард оперативно и грамотно решил мой вопрос, разъяснил все нюансы и предоставил подробные консультации на каждом этапе.

Theodore Tserni

Great advice from very competent professionals regarding a surprisingly large variety of business related questions! Definitely recommend to anyone interested in finding the most efficient path to solving various challenges.

Ирина Курунськая

Три года я обслуживаюсь в компании. Уже этот факт «говорит сам за себя». За этот период было Очень много разных вопросов и по направлениям, и по сложности, и по нестандартности, неординарности. Но, если вы постоянный клиент, можете рассчитывать на самое «глубокое погружение», изучение, быстрый поиск решения и оперативное исполнение.
Основываясь на собственном опыте, утверждаю, что в лице Эдуарда и сплоченного коллектива, вы найдете надежного партнера. Рекомендую

Артур Луганский

I was recommended to contact NAWI Europe and specifically Eduard for financial matters. We quickly arranged a meeting. Eduard proposed a solution, warned about potential pitfalls that needed to be considered. During the process, he did everything that depended on him and even more: he checked contracts, recommended people to solve issues that did not directly concern him. Everything was done clearly, on time, and within my budget.

Only positive impressions from the cooperation. I recommend NAWI Europe and Eduard personally as a professional and as an honest and responsible person.

FAQ

Where are the funds kept when using an escrow account?

Funds are always held in a separate account known as an escrow account. An individual account is opened for each client, ensuring complete separation of the client’s funds from the assets of the lawyer, notary, or bank. Upon client request, the account holder must confirm the deposit into the escrow account.

Which bank can open an escrow account?

In real estate transactions, the account is opened in the bank financing the property construction, i.e., the bank providing project financing. This bank becomes the holder of the escrow accounts for all shareholders in the building under construction. If the developer builds the property using their own funds, they choose the escrow bank from a list of banking institutions.

How is the escrow account opening process conducted?

The client signs a written custodial funds agreement or a trust management contract. The document stipulates the rights and obligations of the parties, the possibility of interest accrual, terms of funds disbursement, and other details. Funds can be deposited in Czech or foreign currency, either in cash at the bank’s cashier or by bank transfer.

Can a lawyer, notary, or bank use the client’s funds during storage?

No, disbursements from the funds deposited by the client in favor of the lawyer, notary, or bank are not permitted, except as provided by law, agreement with the client, or court order. The custodian must always confirm the balance of funds in the account to the client.

Is it possible to store stocks, documents, and other movable assets in an escrow account?

Yes, such assets can be stored as part of the escrow service. They must be kept in a special safe.

Who has access to the safe with valuables?

Only the lawyer, notary, or an authorized person can access the safe. The contents of the safe are released exclusively to the client or their authorized representative.

What fees are charged for escrow services?

Payment for custody services is always determined by an agreement between the parties. The law does not regulate this issue, except in cases where funds are held by a notary. The fee size is always negotiated with the client individually.

could be interesting

Unlocking bank accounts in the Czech Republic

Banking services

Might also be interesting