METHODS OF PAYING THE SALE PRICE FOR REAL ESTATE
Reading my website, you can become acquainted with the commonly used concept of ‘security of trading’. This involves not only complying with the law, which is the most crucial aspect of a notary's work, but also ensuring that you leave the notary's office with confidence that the price will be paid.
There are several safe and secure options, i.e. cash payment at the notarial deed, although this method may not be feasible in every case as discussed later in this article zapłata gotówką przy akcie notarialnym, przy czym sposób ten nie w każdym przypadku jest możliwy do zastosowania, o czym mowa w dalszej części niniejszego artykułu, non-cash paymenti.e. by bank transfer made electronically during the visit to the notary's office, or through the use of a notarial deposit..
Due to existing regulations, it is not always possible to settle the sale price of a property in cash. This is a result of legal provisions established to combat money laundering and the grey economy.
From 1 January 2024 the provision of Art. 7b of the Consumer Rights Act of 30 May 2014 will come into effect, which will imply that a consumer is obliged to make payments via a payment account if the single value of the transaction with an entrepreneur, regardless of the number of payments resulting from such a transaction, exceeds PLN 20,000.- or the equivalent of that amount. Transactions in foreign currencies will be converted into PLN at the average exchange rate of foreign currencies published by the National Bank of Poland on the last business day preceding the day of the transaction. This change will apply to transactions between a consumer and an entrepreneur.
The cash transaction limit between entrepreneurs is currently set at PLN 15,000 (Art. 19 of the Entrepreneurs' Law Act of 6 March 2018). From 1 January 2024, it will be reduced to PLN 8,000.-. However, this limit will not apply if one party is a consumer and the other is an entrepreneur.
Payments exceeding these limits will need to be made through non-cash means via payment accounts.
Electronic bank transfer is the most commonly chosen method of paying the sale price in the case of a real estate contract as it is a widely accessible payment method for banks worldwide. A bank transfer cannot usually be reversed, and is a well-known and trusted method of secure money transfer. Transfers are processed fairly quickly and are an easy way to send money electronically without having to handle cash physically. Depending on whether the transfer is domestic or international, different networks such as Elixir, Express Elixir, SEPA, SWIFT, SORBNET are used, ensuring a secure method of transmitting messages between banks. Instead of transferring funds directly, the network sends payment orders from the bank of the person initiating the transfer to the recipient's bank.
Elixir is a bank-to-bank transfer between accounts in Polish banks and is settled in PLN.
Express Elixir enables instant Elixir transfers, reaching the recipient without waiting for subsequent banking sessions.
SEPA for EUR transactions to a recipient with an account in a foreign bank.
SWIFT for international transfers in dollars and other currencies.
SORBNET is a fast PLN transfer for transactions above 100,000 zlotys.
However, to make a smooth electronic transfer in the notary's office, it is necessary to lift limits on the bank account one day in advance and check the procedure for making larger payments with the bank managing the account. Parties to a notarial act conducting electronic transfer at the notary’s office ask when the funds will be visible in the seller's account and how this will be secured in the content of the notarial deed.
Banks exchange messages during three settlement sessions of the National Bank of Poland: the morning settlement session from 10:30 to 11:00 a.m., the afternoon settlement session from 2:30 to 3:00 p.m., and the evening settlement session from 5:00 to 5:30 p.m. As a result, a standard money transfer between banks takes several hours at a minimum, and if a transfer is ordered in the afternoon, it will be posted only on the following day. Therefore, even though the electronic transfer is made at the notary's office, such payment of the price should be secured by including in the notarial deed the buyer's statement on submission to enforcement proceedings under Article 777 of the Civil Procedure Code.
An electronic instant bank transfer made during a visit to the notary's office is a reliable and secure way of paying the sale price,the same effect can be achieved if the seller sets up a bank account for themselves for the sale of real estate in the same bank where the buyer has an account. The funds will already be visible in the seller's account during the signing of the notarial deed.
Besides the above payment methods, there is the option of ensuring a hundred per cent guarantee of payment of the sale price through the use of a notarial deposit..
According to Art. 108 of the Polish Notaries Law Act, in connection with an action performer in their office, a notary may accept for safekeeping securities or money in Polish or foreign currency in order to release them to the person indicated when the deposit is made or his or her legal successor. To evidence these activities the notary keeps a dedicated bank account. Upon receiving the deposit the notary draws up a record specifying the date of receipt, establishing the identity of the depositor, the date of future release, and the name, surname, and place of residence of the person receiving the deposit. The release of the deposit takes place with an acknowledgment of receipt.
A notarial deposit is the most effective way of paying the sale price of real estate. In summary, the buyer is obligated to pay the sale price into the deposit account of the notary where the notarial deed for the sale of real estate is signed, within one (1) working day before signing the notarial deed and then the notary disburses these funds to the seller specified in the record of acceptance of the money for safekeeping, after signing the sale agreement, or returns the funds to the buyer if the sale agreement is not concluded – in accordance with the conditions agreed upon in the money acceptance record.
Thus, certainty is obtained that the buyer has the money to pay the sale price, that the seller will receive the sale price, and that the buyer will be refunded if the agreement is not concluded.
It is worth noting that placing money in a notarial deposit is a notarial act that incurs a notary fee, which can be avoided by using other methods that provide certainty of payment, as mentioned above.
This analysis, however, leads to the conclusion that the safest way to pay the sale price is an electronic bank transfer made during a visit to the notary's office or by taking advantage of the benefits of a notarial deposit.