Money First or the Notarial Deed? What Does the Standard Procedure Look Like?

Under Polish law, ownership of a property transfers to the buyer at the moment the notarial deed is signed. This means that the deed itself is the central element of the entire transaction. The standard process usually looks like this: both parties meet at the notary’s office, sign the deed, and the payment is made on the same day or immediately afterward.

In most cases, the payment is made via bank transfer on the day the deed is signed. The seller typically receives the funds within a few hours or, in some cases, on the next business day. It is important that the payment date and method are clearly specified in the notarial deed itself, as this protects both parties involved in the transaction.

It is also worth remembering that before signing the notarial deed transferring ownership, the parties often sign a preliminary agreement. Based on this agreement, the buyer pays a deposit or advance payment to reserve the property and confirm their intention to purchase it.

What Is the Difference Between a Deposit, an Advance Payment, and a Notarial Escrow?

Before the ownership transfer deed is signed, the parties may choose different forms of payment security. Each of them works differently and has different legal consequences:

• Deposit — if the buyer withdraws from the transaction, they lose the deposited amount; if the seller withdraws, they must return the deposit in double the amount.
• Advance payment — unlike a deposit, an advance payment is refundable in every situation, without additional penalties for either party.
• Notarial escrow — the buyer transfers the funds to a special account managed by the notary. The notary releases the money to the seller only after the deed has been signed and all agreed conditions have been fulfilled. This solution offers the highest level of security for both parties.

The choice of the appropriate security method depends on the specifics of the transaction and the level of trust between the parties. Notarial escrow is particularly recommended when purchasing property on the secondary market, as it ensures that the seller receives the funds only after the formal transfer of ownership.

Buying an Apartment From a Developer – When Do You Pay and Where Does Your Money Go?

Transactions on the primary market follow slightly different rules. When buying a new apartment, you first sign a developer agreement, which obliges the developer to construct the property and transfer ownership to you. In this case, payments are spread over time and made in stages according to the construction schedule.

A key element protecting the buyer is the housing escrow account. This is a special bank account where your payments are deposited. The funds are held by the bank and released to the developer only after specific construction stages are completed or after ownership is transferred. Thanks to this mechanism, your money remains protected even in the event of the developer’s financial difficulties.

By choosing a trusted developer such as J.W. Construction, you gain additional peace of mind and confidence that the entire process will be carried out according to the highest safety standards.

The final step in a developer transaction is signing the notarial deed transferring ownership of the apartment. This takes place after construction is completed, the apartment is accepted by the buyer, and the full purchase price has been paid. Only then do you become the formal owner of the property, and the ownership deed is entered into the land and mortgage register.

Buying an Apartment With a Mortgage – Money First or the Notarial Deed When Bank Financing Is Involved?

When purchasing an apartment with the help of a mortgage loan, the process becomes more complex. The bank releases the funds only after the notarial deed has been signed and the required documents have been submitted. The process usually looks as follows:

• You sign the notarial deed transferring ownership of the property.
• You submit documents confirming the transaction to the bank, including a copy of the notarial deed.
• The bank verifies the documents and transfers the mortgage funds to the seller’s account.
• The seller typically receives the money within a few business days after the deed is signed.

This means that for a short period after signing the deed, the seller formally loses ownership of the property but has not yet received the full payment. That is why it is so important for the notarial deed to contain precise provisions regarding the payment deadline and the consequences of late payment. The notary may also send a copy of the deed directly to the bank, which can speed up the mortgage disbursement process.

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How Can You Ensure the Safety of the Transaction?

Resolving the issue of payment timing and signing the deed is only the beginning. A secure transaction requires several additional steps worth taking, regardless of whether you are buying from a private individual or a developer.

• Check the property’s land and mortgage register before signing any agreement.
• Verify the seller’s identity and their legal right to dispose of the property.
• Make sure the property is not burdened with a mortgage that the seller has not agreed to repay before the transaction.
• Ensure that the payment date and method are precisely specified in the notarial deed.
• Consider using notarial escrow if you want maximum protection of your funds.

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FAQ – Frequently Asked Questions

When Is the Payment Made During the Notarial Deed Signing?

Payment is usually made on the day the notarial deed is signed or immediately afterward. The exact deadline should be specified in the deed itself. A bank transfer made on the signing day is the most common solution.

How Can You Avoid Being Scammed When Buying Property?

Before the transaction, check the property’s land and mortgage register, verify the seller’s identity, and ensure the property is not burdened with a mortgage. Use notarial escrow if you want to make sure the money reaches the seller only after the ownership transfer.

When Should You Transfer the Money When Buying an Apartment?

Typically, the bank transfer is made on the day the notarial deed is signed or according to the payment deadline specified in the deed. In mortgage-financed purchases, the bank releases the funds after receiving a copy of the deed, which may take several business days.

Does the Notary Send the Notarial Deed to the Bank?

Yes, the notary can send a copy of the notarial deed directly to the bank financing the purchase. This speeds up the mortgage disbursement process and helps the seller receive the payment sooner.