In recent years, Europe’s real estate sector has seen a rising demand for solutions that enhance transparency and protect all parties involved in property transactions. One of the most effective tools supporting this mission are Real Estate Escrow Accounts – a sophisticated mechanism combining several corporate banking products, including escrow accounts, payment guarantees, ESCROW services, and traditional credit facilities.
These accounts are designed to safeguard buyers’ funds during the construction process, while also ensuring developers receive payments only upon completion of agreed project stages. As a result, they build mutual trust between the investor and the buyer, minimizing the risk of fraud or delays.
The legal framework for operating escrow accounts in real estate is defined across Europe by two main regulations:
• Directive 2014/17/EU on credit agreements for consumers relating to residential immovable property, and
• Regulation (EU) No 575/2013 on prudential requirements for credit institutions and investment firms.
Under these regulations, banks act as the central coordinator of the entire process. It is the bank that verifies construction progress, records incoming payments from buyers, disburses funds to developers, and reports contributions to the Developer’s Guarantee Fund (DFG) where applicable.
Among all EU countries, Poland currently has one of the most advanced and detailed frameworks regulating escrow accounts in the real estate sector – introducing precise obligations for financial institutions involved in property development financing.
Recognizing the complexity of these operations, eSourcing has developed a ready-to-implement solution for banks, offering full automation of escrow account operations, DFG reporting, and communication with all stakeholders.
Our system provides the following functionalities:
Investment Data Management:
• Viewing and editing investment and Developer data
• Details of payment tranches
• Information about sold units and Buyer data
Escrow Account Management:
• Monitoring incoming payments from Buyers and disbursements to the Developer
• Linking tranches to payments – real-time financial overview
• Tranche release according to the “four-eyes principle” (maker-checker)
• Automatic disbursement generation:
– to the Developer
– for banking fees related to account maintenance
DFG Handling:
• Automatic calculation and collection of DFG contributions from Buyer payments
• Monitoring of contribution status and their settlement
• Communication with DFG in compliance with legal requirements
• Automatic retries of DFG data transmissions
• Ability to block investments if DFG requirements are not met
Reporting:
• Generation of periodic reports (with automatic email dispatch)
• Ad hoc report generation
Administrative Module
• System parameter management
• View of system events and logs
System Operating Modes
• Investment support in line with current DFG legal regulations
If you are interested in more details, we invite you to contact us.
30 years of experience, a future built on a solid foundation
Our approach – based on our own knowledge, experience and consistent development – has resulted in the creation of a solution that today is at the heart of many critical processes in the Polish financial sector.
The ATOM platform is not just technology, it is also a philosophy of creating systems that grow with the needs of our customers. We believe that this approach is the answer to the challenges facing banking today.