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Precautions for deposit notarization

Deposition refers to the system in which the debtor delivers the subject matter of the contract to the depository authority to extinguish the debt when the subject matter of the contract cannot be delivered to the creditor due to the creditor’s reason.

How to ensure that the other party performs in good faith and that its own interests are not infringed has become a headache for many people. Now, as long as we understand the deposit notarization, these problems will become easier.

Is the sale of second-hand housing the first payment or the first transfer? How to ensure that the other party will not unilaterally break the contract in the cooperative development project? In the market economy, it is not uncommon for buyers and sellers and partners to distrust each other. Generally speaking, escrow notarization means that when both parties sign an economic contract or have a transaction of money or goods, one of them hands over the money or goods to a person who can be trusted by both parties and can handle justice, that is, the notary office. After the business is completed or the purpose is achieved, the notary office will hand over the money or goods to the other party on its behalf.

Take an example to illustrate: Recently, the Taiyuan City Chengxi Notary Office handled a deposit notarization of second-hand housing sales. Mr. Wang has an apartment for sale in Jinyuan District. The buyer, Mr. Wu, decided to buy the apartment after seeing the house. After negotiating the price, both parties were worried about being cheated, so there was a dispute over whether to pay the house first or go through the transfer procedures first. At the time of the standoff between the two sides, a friend recommended the deposit notarization to them. Therefore, the two people came to the notarial office in the west of the city and handled the deposit notarization according to the procedures prescribed in the Notarization Law. After the agreement is signed, Mr. Wu, the buyer, first deposits the house money into the deposit account of the notary office, and then both parties go through the house transfer procedures. After the formalities are completed, Mr. Wang, the seller, can get the house payment from the deposit account.

The reporter learned that the scope of escrow notarization is far beyond second-hand housing transactions. Professionals said that deposit notarization is a common civil legal system in all countries of the world, and can be carried out when dealing with currency, negotiable securities, bills and other transactions. For example, two partners are preparing to jointly invest in the development of a project, and both parties are worried that the other party will withdraw halfway. Although the agreement signed stipulates that either party should bear the responsibility for breach of contract when it no longer invests, once it breaches the contract, it often takes time and effort to recover the losses. The business that was expected to be concluded had many people flinching because of mutual distrust. In this case, both parties can go through the deposit notarization and deposit a certain amount of deposit into the deposit account of the notary office. If one party breaches the contract, the margin in its account will be “compensated” to the other party. In addition, escrow notarization can also be proposed unilaterally by one of the parties to the contract. For example, after both parties signed the rental contract, the landlord regretted and deliberately rejected the house payment for various reasons to achieve the purpose of early termination of the contract. At this time, in order to protect their own rights and interests, renters can go to the notary office to handle the deposit notarization and remit the house money into the deposit account of the notary office to prevent the landlord from putting forward the request to terminate the rental contract.

A notary familiar with escrow notarization told the reporter that escrow notarization plays an important role in supervising the honest execution of contracts by all parties and improving the credit mechanism. In social and economic activities, not many people like to fight lawsuits. The function of deposit notarization to prevent disputes has its unique advantages.

It is reported that although the deposit notarization in China is at the initial stage, it has developed very rapidly. The notarization content not only includes the deposit notarization of enterprise management rights, but also requires the replacement of the general manager and legal representative. In the safe box of the notary office, the deposit items also began to become diversified: in addition to the deposit of the payment for goods and the sample of goods between the partners, there are also the official seals of enterprises, the drawings of designers, project approvals, etc.



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