Fiduciary account (notary) – The special thing about a fiduciary account is that the holder of the account is not the owner of the assets in it. The holder is usually a notary or lawyer who manages the owner’s assets. A trust account is regularly required in particular for the sale of land and real estate. Here, the responsible notary sets up a so-called escrow account into which the buyer pays the agreed purchase amount. Although the seller cannot yet access the sum of money, he has the certainty that the purchaser will be able to pay the purchase price.
Trust Account (Notary) Overview: The notary as administrator of another account
- The holder, usually a notary, of the account is not the owner of the assets
- The notary manages the assets of the owner
- Regularly required for the sale of real estate
- In this case: the responsible notary sets up an account into which the purchaser pays the purchase price of the property.
- The seller of the property cannot access the money yet, but he has the certainty that the buyer can raise the purchase price
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