Problems of Implementing Escrow Accounts in Real Estate Transactions

In the final qualifying work on the topic «Problems of Implementing Escrow Accounts in Real Estate Transactions», the following goal was set: to study the difficulties that were identified when using escrow accounts in real estate transactions by in-depth analysis of this institute, as well as to offer solutions to these problems. The study was based on the current civil legislation of the Russian Federation and the doctrine. The relevance of the work is significantly high because of the last reform of shared-equity construction: the lawmaker introduced the mandatory use of escrow accounts in transactions between developers and shareholders from July 1, 2019. In such situation, it is necessary to understand both the advantages and disadvantages of the new model proposed by the legislator; to predict possible negative consequences. In the course of the work, the following tasks were performed: the regulation of the escrow account in civil law and the existing doctrine were scrutinized; the cases of using escrow in real estate transactions were analyzed; the reasons why escrow accounts were chosen to use in shared-equity construction were found; problems that the escrow account may face or has already faced in real estate transactions were revealed, and for each of them, a solution was proposed in the conclusion. The final part of the work presents the author’s own recommendations for improving the practice of using escrow accounts in real estate transactions.