Notary’s deposit account becomes more protected

The meeting between the representatives of the Notary Chamber of Georgia and the Banks has been ended with an agreement. Banks are ready to open the nominal accounts for notaries which means that if the deposit account of the notary is sequestered, the amount deposited by the citizen shall not be sequestered or incase shall not be affected. This is an additional guarantee for the protection of citizens' property.

The conditions offered by banks shall provide the notaries to more activate the service. All the notaries acting in Georgia shall have a deposit account in the nearest future, where the citizens can safely deposit money and the securities.

The citizens shall become more interested in this notary service. 140 citizens used the notary's deposit account in 2015, 170 - in 2016 and 114 citizens this year.

When can we use this service?

For example, there are cases when the loan agreement guaranteed by the mortgage has been signed, it is time for repayment but the borrower is unable to find the lender or the lender hides and the agreement determines that the borrower shall be imposed a penalty in case of overdue payment. In such case, the borrower can deposit the borrowed money to the deposit account of the notary and no penalty shall be imposed.

There are also cases when disputes arise between the Purchaser and the Seller at the conclusion of the Purchase Agreement - the Purchaser is not willing to pay money till the registration of property right and the Seller refrains from the property registration before receiving the money. In such case the Purchaser can keep the money on the deposit account of the notary and safely wait for the registration of the right of purchased property. At the same time, there shall be no risk for the Seller to obtain back the own money.

What should we know about money and the securities when depositing into the notary’s deposit account?

 Transferring the money, the securities and other valuables to the notary has the same legal consequences as transferring to the Court.

The sum can be deposited in the deposit account of a notary both by transfer or in cash.

After receiving the money and the securities in the deposit, the notary draws up a protocol by indicating the property name and amount. Also, the reason declared by the borrower why he failed to fulfill the obligations assumed under the Agreement.

After drawing up the protocol, the notary shall notify the creditor about the deposit of the money, the securities and / or other valuables and transfers him the items received in the deposit.

If the creditor refuses to accept money, the securities and other valuables, the refusal shall be certified according to the notary laws. Refusal shall be considered if the creditor fails to receive the items of deposit within three years from the date of their deposit.

The notary shall notify the Debtor about the refusal of the Creditor and requires the return of the deposit. The return period must not be less than three months. If the Debtor fails to return the deposit within the given term, the notary shall transfer the deposit funds into the state budget.