Purchase price escrow (úschova kupní ceny)

Why not send the full price straight to the seller

Some time usually passes between signing the purchase agreement and completing registration in the Land Registry. The buyer needs to be sure the money won’t leave without the agreed outcome. The seller, in turn, needs to know the money is ready. Escrow links the two steps, but how safe it is depends on both the provider and well-defined conditions.

In the agreement, keep a close eye on the amount, the account, the conditions for release, the required documents and the procedure if the transfer fails. Deadlines and rules for returning the money belong here too. A generic line such as “the money will be paid out after the transfer” leaves key questions unanswered.

What to check before paying

With lawyer escrow, verify the lawyer, the written agreement and the dedicated escrow account. The lawyer must report the escrow to the electronic register before accepting the money. Ask for the bank’s confirmation of the escrow account as well. Don’t rely on a forwarded account number or on a message that changes payment details at the last minute.

To give you an idea: the agreement can tie the payout not only to the buyer’s registration but also to the title extract showing no encumbrances other than those expressly agreed. The wording must fit the specific transaction, such as settling an existing mortgage. That’s why escrow should be chosen and checked separately. Having escrow in place is no guarantee that the property is free of legal defects.