In the implementation of various transactions involving the sale of various property, the question arises as to how the transfer of money will be carried out. The procedure can be carried out in different ways, but at the same time, each participant in the transaction seeks to protect himself from possible fraud by another citizen. Therefore, the choice of a particular method depends on the relationship and trust between the two parties.
How is the transfer of money?
Funds are transferred by the buyer to the seller for various property. The process can be carried out in two ways:
- The provision of cash. In this case, the amount is transferred from hand to hand. The procedure can be performed on the basis of a correctly drawn up receipt or with the participation of a notary.
- Money transaction. Under such conditions, money is not offered in cash, so they are transferred in various ways to the seller’s account. Additionally, a bank letter of credit can be used.
Each method has both advantages and disadvantages. The participants in the transaction have the right to independently decide which method will be used.
Attraction of a notary
If the parties to the transaction are strangers to each other, then they risk transferring funds even with a simple hand-drawn receipt. This is due to the fact that there is always a chance to run into a scammer. Therefore, money is often transferred from a notary public.
On the basis of Federal Law No. 457, notaries have the right to provide individuals or companies with a deposit of money for settlement of various transactions and operations. The procedure for transferring funds is divided into the following stages:
- before the conclusion of the transaction, a notary is selected;
- for a certain fee, the amount for property purchased on the basis of a formal contract is transferred to a specialist;
- conclusion and registration of the contract;
- property is transferred to the buyer;
- a notary gives money to the seller.
The terms of the transaction and the agreement must first be agreed with a notary.
Pros and cons of notary involvement
Cash transfer via notary has the following advantages:
- in one place a deal is made and settlements are made;
- allowed to use not only cash, but also non-cash;
- it is not required to sign additional agreements represented by a receipt;
- funds are not spent on renting a bank cell or using a letter of credit;
- attracting a notary acts as an additional guarantee of the legal purity of the transaction;
- the specialist keeps copies of all documents, so if the originals are lost, they can be obtained from the archive;
- the notary is responsible for all certified transactions.
But the use of specialist services has some disadvantages:
- for the transfer of money to a notary deposit you have to pay a certain percentage;
- increased costs for cashing money;
- using a deposit is a paid service;
- even if a deposit is not applied, all the same, notary services are paid by both participants or only by one party to the transaction.
If the buyer encounters various problems in the process of signing or registering the contract, he can at any time request his money back from the notary.
Using a receipt
Often, funds are transferred using a regular receipt drawn up by hand by the direct participants in the agreement. The process involves performing sequential actions:
- The parties agree to conclude a transaction;
- preliminary agreement is signed;
- money is transferred to the seller by the buyer, for which a receipt is drawn up;
- the main contract is concluded;
- The right to property is registered in Rosreestr.
The receipt of the transfer of money necessarily includes the following information:
- information about both parties to the transaction, presented by their full name, passport data and registration addresses;
- indicate the date and place of transfer of funds;
- the exact amount transferred by the buyer to the seller is given;
- the actions that must be performed by the seller to transfer the right to property to another party to the transaction are prescribed;
- each party signs the document.
A receipt is made in duplicate. It can be certified by a notary, for which you have to pay for the services of a specialist. By attracting a notary, the chance to win a court increases if the seller of the property does not want to conclude a deal.
Pros and cons of receipts
The advantages of transferring money using a receipt include:
- a lot of time and money is not spent on registration;
- the parties may independently agree to change the price of the property;
- usually used in the transaction of relatives or friends.
But the use of receipts has many drawbacks. These include the fact that there is a possibility that the seller will refuse the transaction, and it will only be possible to return the funds through the court. Therefore, this method is considered unreliable, since it is used in most cases by fraudsters.
Bank cell application
This method is considered reliable and simple, but certain services are definitely paid for the services of the selected banking institution. They act as a rent for the depository, which is a special repository. How to arrange a money transfer using a bank cell? The process is divided into the following steps:
- simultaneously with the preparation of the preliminary contract of sale, an agreement is concluded with the selected bank for the lease of the depositary;
- the buyer at the second participant recounts the funds, after which they are sent to the store;
- the bank’s services are paid, and the buyer usually performs this process, as he is interested in the safety of funds and protection against fraud;
- a tripartite contract is drawn up with the bank, since a credit institution, a seller of property and a buyer take part in the transaction;
- the agreement indicates on what terms the seller will be able to receive the funds, as well as until what date the money will be in the vault;
- then the main contract is signed between the buyer and seller;
- the transaction is registered in the Rosreestr;
- with documents confirming the fulfillment of obligations, the seller turns to the bank, after which the required funds are issued to him.
With the help of such a money transfer agreement drawn up with the bank, each participant can protect themselves from possible fraud.
Pros and cons of a bank cell
Using such a credit institution service to transfer money has several advantages:
- guaranteed transaction cleanliness, as fraudsters do not agree to sign an agreement with the bank;
- money security is ensured, since it is the bank’s employees who control access to the open cell;
- confidentiality is guaranteed;
- before the money is taken by the bank, it is recounted and checked, so you can be sure that there are no fakes;
- if the transaction breaks down for various reasons, then the money is returned to the buyer.
Bank cell is considered the safest method of payment. But such a money transfer deal has several drawbacks. These include the high cost of renting a cell and the need to draw up an additional agreement. You will have to pay for storage insurance, and the bank is not responsible for the information contained in the main contract. Calculation is carried out only with cash.
Nuances of using a bank letter of credit
It is an analogue of a bank cell, but at the same time it is possible to use cashless payments. Money transfer in this way is implemented in several stages:
- the parties agree to use a letter of credit;
- a bank is selected for cooperation;
- a tripartite agreement is drawn up, which indicates the conditions under which the seller of the property will be able to receive funds, and usually this happens only after the property being sold is registered in Rosreestr with the buyer;
- money is transferred to a bank account, and cash can also be used;
- two banks may participate in the transfer of funds.
This method is considered reliable, therefore it is used by responsible people who are really interested in making a deal. Bank services are paid either by both parties, or by only one participant.
Pros and cons of a letter of credit
Using such a bank offer has many advantages. High security of funds transfer is guaranteed, and also it is not required to deal with cash.
But there are some disadvantages. These include the fact that to use a letter of credit you need to spend a little more money than when ordering a bank cell due to the increased cost of the service. Additionally, the number of signed documents is increasing. Not all banks offer such a service.
Transferring money to the buyer's account
A money transfer transaction can be carried out by transferring funds to an account opened with a bank seller. This method is considered risky for the buyer, since usually the money is transferred before the direct registration of the contract for the purchase of a certain property.
Often, parties agree that money is transferred only after the transaction is registered. But in this case, it is the seller who is at risk, as he may simply not wait for his money.
If money is transferred ahead of schedule, a special agreement is drawn up between the two parties. Information is entered into it:
- the nuances of the transaction;
- date and time of the transfer of funds;
- the exact amount needed to purchase a particular property;
- The characteristics of the acquired property are listed;
- details of the accounts of both participants are given.
An agreement is signed by both citizens. It acts as a confirmation of settlements between participants in the transaction. If the seller refuses the transaction, the buyer can return his funds through the court, for which an agreement indicating the fact of transfer of money is used as evidence.
How to protect yourself from cheating?
Transferring funds under various contracts is always a complex and risky procedure. Therefore, each participant in the transaction must know how to protect themselves from possible fraud. For this, the following recommendations of lawyers are taken into account:
- a receipt or an act of transferring money is signed, signed by both parties to the transaction;
- It is advisable to sign the contract in the presence of witnesses;
- all documents provided by the seller must be carefully checked, and it is advisable to use not only special services on the Internet, but also the services of lawyers or realtors;
- It is recommended that you find out as much information as possible about the seller of the property as a person, for which relatives and neighbors are questioned;
- It is advisable to agree that the funds be transferred to the seller only after the transaction is registered with Rosreestr.
By following these simple rules, you can really protect yourself from possible fraud by the seller. The possibility of using different methods or agreements on the transfer of money is agreed upon by two participants until the main agreement is signed directly.
Conclusion
Transfer of funds under different contracts can be carried out in different ways. For this, money transfers or cash transfers can be used. The process can be carried out on the basis of a receipt, participation of a notary public or the use of various collaterals offered by the bank.
Each participant in the transaction wants to protect themselves, so you should only agree to the conditions under which the likelihood of using fraudulent schemes is minimized.