Escrow account
Escrow accounts are a type of suspense account service where the parties to an agreement place a certain amount of money in the bank and mutually monitor the payment with regard to the completion of contractual obligations. For instance, in the event of purchase and sales of immovable assets and valuable items the parties to the agreement are protected from the feasible risk of changes in the contract by placing the amount in the escrow account.
Required materials for the opening of escrow account:
- Request for opening escrow account. /Khan Bank form/
- Tripartite agreement between the bank and the collaborating parties. /Khan Bank form /
- Citizen’s ID if the collaborating parties’ are individuals; Company’s certificate and stamp if the collaborating parties are legal parties.
- Notarized agreement set up between the collaborating parties.
A Khan Bank employee and the collaborating parties who signed the tripartite agreement shall be present with the following required materials for the closing of Escrow account:
1. Payment request filled out by the collaborating parties. /Khan Bank form/
2. Citizen’s ID if the collaborating parties’ are individuals; Company’s stamp if the collaborating parties are legal parties.
3. Documents to prove that the collaborating parties have fulfilled their contractual obligations.
Fees and commissions for the Escrow account service:
• No fee for opening the account
• 0.1% of the amount placed in the bank for the fee of setting up an escrow agreement.
/the fee amount shall not exceed MNT 100.000 or USD 100/
• Service fee shall be paid under the mutual agreement of the seller and buyer.
• Bank shall not pay interest for the amount deposited to an escrow account. |
