The aim of an escrow account is to ensure the financial security of buyers and sellers when a purchase-and-sale transaction takes place in lats or in other currencies. 
 
The idea of an escrow account is for Krājbanka to serve as a mediator in relations between the buyer and the seller, thus ensuring that the interests of both parties are served.  In the case of the buyer, the money is transferred from his account only after all purchase documents are prepared.  The seller can be certain that once all obligations are settled, the money will be paid.

The opening of an escrow account is based on a three-party agreement involving the buyer, the seller and Krājbanka. Once the agreement is signed, the buyer opens an escrow account at Krājbanka and deposits the amount of money that is consented to in the agreement. During the period when an escrow account agreement is in effect, the buyer cannot withdraw money that has been deposited in the account without the seller’s agreement.  This allows the seller to be certain that the money has been reserved for the purchase.  The buyer, in turn, knows that money will be transferred to the seller only after all documents attesting to the satisfaction of purchase-related obligations are prepared.

The length of time for an escrow account agreement to remain in effect is determined by the buyer and seller on the basis of mutual agreement.  The contract can be extended after its expiration if the purchase-and-sale operations have not  been completed yet.

Documents for opening an escrow account

Escrow Account Tariffs