Are you buying a premium property with your own funds and it seems to you that it is simpler than a transaction with a loan? This is where the biggest challenge arises, however. The money is waiting in the seller’s account, but the deed is not yet signed. Or vice versa: you already have the keys, but the transfer has not arrived. The time gap between payment and transfer of ownership is a major source of risk. A well-designed settlement mechanism – with a notarial deposit at the forefront – allows you to significantly reduce the risks associated with the settlement of transactions. The following guide explains how to do this step by step.
Highlights
When buying real estate with your own funds, the greatest risk concerns the moment between the payment of the price and the signing of the notarial deed – or vice versa: between the signing of the deed and the actual receipt of money on the seller’s account.
A simple transfer before the deed increases the buyer’s risk, while a transfer after the deed increases the seller’s risk.
Today, physical cash payment is a rare and difficult organisational solution, and in transactions between entrepreneurs, there is a limit of cash payments of PLN 15 thousand gross (above this amount, the transaction must be non-cash).
A high-amount transfer in the SORBNET3 system – operating since 8 September 2025 as the NBP high-value payment system – may shorten the settlement time, but it still does not provide the same level of neutral collateral as a notarial deposit.
It is the provisions of the Law on Notaries that are the most frequently recommended mechanism for the protection of both parties to the transaction are based.
Why doesn’t buying with cash automatically mean a safe transaction?
In our work, we observe that the greatest emotions when buying premium real estate are not the decision to make the transaction, but the question: when and how to transfer money so that neither party is left without protection?
Myths about buying with cash
There is a widespread belief that since the buyer has their own funds, the purchase process is simpler than in the case of a mortgage loan. Intuition tells us: you don’t have to wait for the bank’s decision, there is no risk of refusing financing, so the transaction goes faster and safer.
In practice, it is the opposite.
In the premium segment, the amounts are high – often several hundred thousand, and often several million zlotys. Even a brief moment of lack of security between the transfer of money and the transfer of ownership carries a risk, the scale of which is difficult to accept.
What matters is not only the price itself, but also the sequence of actions, the form of payment and the precise content of the notarial deed.
When does the transfer of ownership of real estate take place?
According to Polish law, a real estate sale agreement requires the form of a notarial deed. This is an absolute legal requirement, without which the transfer of ownership does not take place.
Ownership of the property passes to the buyer at the time of signing the notarial deed. This moment is not the same as the moment when the price is paid – and it is this discrepancy that is the source of most risks:
| Scenario | Who bears the risk |
| Money before the act | The buyer – may lose funds without the right to the property |
| Money after the deed | Seller – loses the property without certainty of payment |
Buyer Risks vs. Seller Risks
Understanding the distribution of risk between parties is the basis for a safe settlement.
Risks on the buyer’s side
A buyer who transfers the full amount before signing the notarial deed is in practice entrusting his money to a person with whom he does not yet have any legal title to the property. This is analogous to handing over the keys to a safe to someone you met a moment earlier.
The most serious threats:
- Failure of the transaction to take place – withdrawal from the contract, sudden change of decision or formal complications on the part of the seller;
- Seizure of the seller’s bank account by a bailiff – the funds paid may be seized as part of enforcement;
- Declaring the seller’s consumer bankruptcy – the money enters the bankruptcy estate, and the buyer becomes only one of many creditors;
- Death or sudden loss of legal capacity of the seller before signing the deed – the funds are blocked, e.g. as part of long-term inheritance proceedings.
In an extreme case, the buyer is left without funds and without the right to the property. The refund must then be sought in court, which is associated with costs, long waiting times and uncertainty of the verdict.
Risks on the seller’s side
When the parties agree to pay after signing the deed, the seller transfers ownership before receiving the price. He loses control over the property, at the same time not being sure if and when the money will reach his account.
A delay in the transfer, even a few days, may result from technical problems with the bank, errors in the transfer instruction or unforeseen complications on the part of the buyer.
Is Article 777 of the Civil Procedure Code sufficient?
Article 777 of the Civil Procedure Code, i.e. the buyer’s declaration of voluntary submission to enforcement, is a useful legal instrument included in a notarial deed. It enables simplified claims.
However, this is not an ideal solution. It only means a simplified path of bailiff enforcement, which is still associated with costs, formalities and the risk of many years of proceedings. In extreme cases, a bailiff’s auction occurs, which does not guarantee the full price recovery.
Article 777 of the Civil Procedure Code is an auxiliary security, not a substitute for a safe settlement mechanism.
Methods of payment for the property from own funds
There are several methods of settlement. Each has certain advantages, but also serious limitations.
1. Physical cash payment
This solution has a long tradition, but is currently marginal – especially in the premium segment.
Reasons:
- Physical security – the transport of amounts of several hundred thousand or several million zlotys carries a high personal risk;
- AML procedures – anti-money laundering regulations impose additional verification and reporting obligations on notaries;
- Limit of cash payments – in relations between entrepreneurs, the threshold is PLN 15 thousand gross;
- Lack of evidence – in the event of a dispute, proving the fact and the amount of payment is much more difficult than in the case of a bank transfer.
2. Transfer before signing the deed
This is a popular form of settlement. The buyer transfers the agreed amount to the seller’s account before appearing at the notary’s office.
It is convenient primarily for the seller. The buyer, on the other hand, entrusts his money to the other party without a legal guarantee. If the transaction does not go through, the buyer is left without funds and without real estate.
If the parties choose this model, you should take care of:
- Confirmation of the seller’s title immediately before the transfer is made;
- A written agreement setting out the terms of prompt return in the extreme event of non-contract;
- Establishing a precise schedule of further activities at the notary.
3. Transfer after signing the deed
The buyer signs the deed, becomes the owner of the property, and only then transfers the price to the seller’s account. The seller assumes the risk of delay or non-payment.
Article 777 of the Civil Procedure Code provides some security here, but it is incomplete. This model requires the seller to have a high degree of trust or to introduce additional security mechanisms in the content of the deed itself (e.g. reservation of ownership rights or strict deadlines).
4. High-Cost Transfer SORBNET3
From 8 September 2025, the National Bank Polish has made available the SORBNET3 system – a new platform for high-value settlements, enabling transfers of significant amounts in a shorter time than standard interbank transfers.
A transfer in the SORBNET3 system can be made directly at the notary’s office during the course of the transaction, provided that both parties have accounts with banks participating in this system.
SORBNET3 speeds up the transfer of funds, but does not provide neutral security for both parties. This is a purely technical solution, not a legal security for the transaction.
5. Notarial deposit
This solution, in our opinion, best responds to the specifics of transactions on the premium market.
A notarial deposit is a mechanism provided for in the Law on Notaries (Article 79(6) and Article 108), under which a notary, as a person of public trust, accepts money for safekeeping in order to pay it to the person indicated at the time of deposit – after meeting certain transaction conditions.
How does a notarial deposit work step by step?
- The parties agree on the sale price and the date of concluding the agreement.
- They choose a notary’s office that will handle the transaction.
- The buyer pays the agreed amount to a special deposit account maintained by a notary.
- All funds must be credited before signing the contract.
- The notary draws up a protocol of acceptance of the deposit, specifying who paid the funds, to whom they are to be paid and to which bank account.
- The condition for payment is the conclusion of a sales agreement within a specified period.
- After signing the notarial deed, the notary transfers the funds to the seller’s account.
- If the contract is not concluded within the agreed deadline, the notary returns the funds to the buyer.
Once the deposit has been accepted, it is no longer possible to unilaterally modify the withdrawal conditions, and the depositor cannot claim the return of funds in cases other than those indicated in the protocol.
Funds accumulated in the deposit account:
- They are not subject to seizure;
- They are not part of the bankruptcy estate of the buyer or seller;
- They are not part of the estate of the notary himself.
Why is a notarial deposit the best for both parties?
The answer comes down to one word: neutrality.
In the notarial deposit model, the money does not go directly to the seller before the conditions are met. The buyer does not transfer funds “blindly”. The seller, on the other hand, is sure that the amount exists and has already been secured in a neutral account.
A notary is a person of public trust – independent of the parties, bound by the law and supervision. He has no right to dispose of the funds entrusted to him in a manner other than that specified in the depository protocol.
The terms of the release of funds are determined in advance and cannot be unilaterally changed.
This solution is particularly suitable for the premium market, where:
- The transaction amounts are very high;
- The parties usually do not know each other;
- Discretion, predictability and stress reduction are important;
- The whole process requires precise coordination from the first to the last step.
In the premium segment, transaction security should not be an optional add-on, but a standard of service.
Transaction step by step – a secure scheme
Below we present a complete scheme for the safe purchase of premium real estate with your own funds using a notarial deposit.
| Step | Action | Details |
| 1 | Verification of legal status | Examination of the land and mortgage register in terms of mortgages, claims, easements and checking the spatial development plan. |
| 2 | Setting the conditions and schedule | Price negotiations, arrangements regarding equipment, technical condition and deadlines for handing over the property – included in the preliminary agreement. |
| 3 | Choosing a notary’s office | Choosing a notary who maintains an escrow account and has experience in high-value transactions. |
| 4 | Establishing a billing model | Choosing a payment method, specifying the conditions for withdrawing from the deposit and the details of the protocol. |
| 5 | Depositing funds into the deposit | Transfer to the notary’s deposit account – the entire amount must be credited before the deed is signed. |
| 6 | Signing a notarial deed | Conclusion of a real estate transfer agreement. |
| 7 | Withdrawal of funds | The notary transfers funds from the escrow account directly to the seller’s account. |
| 8 | Post-transaction formalities | Submitting an application for entry in the land and mortgage register, possible tax settlement and transfer of real estate. |
Documents and arrangements before signing the deed
In the case of luxury real estate, the list of required documents can be much longer than in the case of a typical transaction on the secondary market:
- An excerpt from the land and mortgage register – current, not older than a few days;
- Certificate of no arrears in service charges;
- A document confirming the seller’s title;
- Extract from the land register;
- Development agreements or occupancy permit (if applicable);
- Certificate of independence of the premises (at the premises).
In transactions with an international element, it may be necessary to obtain a real estate purchase permit issued by the Minister of the Interior and Administration. Some foreigners are exempt from this requirement, but each time it requires an individual legal analysis.
Specifics of premium real estate
The premium segment is governed by its own rules – and it is not only the higher price that determines it.
Confidentiality
High-value transactions are rarely of public interest. A notarial deposit makes it easier to maintain discretion – the entire settlement takes place as part of a notarial act, without involving additional entities.
Complexity of the legal status
Luxury properties often have a long ownership history, more complex encumbrance structures, or additional arrangements for accompanying infrastructure (e.g., participation in access roads, shared installations).
Multi-actor coordination
Advisors, notaries, banks, sometimes attorneys – such cooperation requires a lot of experience and precision. When purchased by a special purpose vehicle, the procedure requires additional formal steps: from registration of the entity to verification of the articles of association and the rights of representatives.
With premium real estate, any inaccuracy costs proportionally more – both in terms of finance and image.
Notarial deposit costs
The use of a notarial deposit is an additional paid service. The regulations specify the maximum remuneration of a notary for accepting a deposit at half of the standard notary fee for a given transaction. In practice, this rate is negotiable.
The law does not specify which of the parties should cover this expense. Typically, the cost of the deposit is borne by the buyer, but the final division of costs is a matter of arrangement between the parties.
It is worth asking yourself: how much does the lack of protection really cost?
In the case of transactions amounting to millions of zlotys, the cost of a notarial deposit is only a fraction of a percent of the value of the property. This is a small investment in eliminating risk, which in the extreme case could result in the loss of a significant part of capital.
Who should consider a notarial deposit?
A notarial deposit is especially recommended when:
- The parties to the transaction do not know each other before;
- The transaction amount is high;
- The legal status of the property is complex or needs to be sorted out;
- One party is concerned about the financial stability of the other;
- The transaction is international in nature;
- The parties are committed to symmetrical and impartial protection.
At Signature Estates, we recommend that when buying with your own funds, you should not evaluate the transaction only through the prism of technical convenience, but above all through the prism of the security of both parties.
FAQ: buying premium real estate with cash
Is it safe to buy premium real estate with cash?
Yes, provided that we adjust the appropriate way of settling the price to the transaction. Security depends on the settlement mechanism and not on the source of capital itself.
Is it possible to pay for a physical property in cash?
In relations between natural persons, this is legally permissible, but in practice it is rarely used. In transactions where at least one of the parties is an entrepreneur (e.g. a developer), there is a limit of cash payments of up to PLN 15 thousand gross (amounts equal to or higher must be settled non-cash).
Is a simple transfer enough?
It may be enough, but it does not offer symmetrical security for both sides. The risk increases for the buyer when transferring before the deed, and for the seller – when transferring after signing the deed.
Does SORBNET3 solve the security problem?
It makes things easier technically – it speeds up the execution of a high-value transfer. However, it does not replace a well-designed legal security for transactions.
What is the difference between a notarial deposit and a regular transfer?
When deposited, the funds go to a special deposit account of the notary and are issued to the beneficiary only after meeting the conditions described in the protocol. A notary has no right to dispose of them in a manner other than that stipulated in the document.
Who usually pays for a notarial deposit?
Most often, this cost is covered by the buyer, but the parties can agree on a different division of costs as part of individual negotiations.
Does Article 777 of the Civil Procedure Code replace the notarial deposit?
No. This is a useful additional collateral – it facilitates debt enforcement, but does not provide the same protection as a deposit, in which funds are secured in a neutral account until the agreement is finalized.
Does a notarial deposit protect funds in the event of a notary’s bankruptcy?
Yes. The funds accumulated in the notary’s deposit account are not subject to seizure, they do not enter the bankruptcy or inheritance estate, regardless of the financial situation of the law firm or the notary himself.
Anna Awłasewicz