Videos · Buying property in Ukraine
Escrow in Ukrainian real estate: how it works for foreign buyers
1:57 · 2020 · Sean Almeida
Escrow accounts in Ukrainian property deals, explained by Sean Almeida in July 2020. Recent changes in the law made escrow workable, and the government encouraged it. He describes two cases: a buyer who does not want a Ukrainian bank account (US citizens often avoid foreign accounts because of IRS reporting), and a buyer abroad whose lawyer or relative holds the power of attorney but cannot pay from their own account. The money sits in escrow and moves to the seller on the day of the deal. At the time, Vestor.Estate had used it four times in six weeks.
Questions this video answers
What is an escrow account in a Ukrainian property purchase?
The buyer's money goes to an escrow account and stays there until the day of the deal, when it is transferred to the seller. Sean explains that escrow accounts were not explicitly illegal before, but the law gave them little support. Recent changes made them supported and even encouraged by the government.
Sean Almeida, as said in 2020 · watch at 0:12
When does a buyer use escrow?
Sean names two cases. The buyer does not want to open a Ukrainian bank account (many Americans avoid foreign accounts because they must report them to the IRS). Or the buyer is abroad and a lawyer or relative holds the power of attorney: that person can sign for the buyer but cannot send money from a personal account on the buyer's behalf.
Sean Almeida, as said in 2020 · watch at 0:43
How does the money reach the seller?
The money arrives in the escrow account, the representative with the power of attorney signs the purchase agreement in place of the buyer, and after the signing the money is transferred to the seller.
Sean Almeida, as said in 2020 · watch at 1:31
Was escrow common in Ukraine at the time?
No. Sean calls it a relatively new thing: some people thought it was not possible and information was hard to find. Vestor.Estate had used it four times in the previous six weeks and said it was new for the company too.
Sean Almeida, as said in 2020 · watch at 1:38
Laws, prices and rules change. These answers describe what was said in 2020; check current conditions before you act.
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