Real Estate

Receipt of payment: cashier’s check Vs bank check

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In technical jargon, the receipt is defined as a “declaration of science” with which the declaring subject acknowledges a certain past fact. It cannot determine the establishment, modification or extinction of a legal relationship. For this reason, the seller will be able to issue a valid receipt together with the deed of sale only against payment by cashier’s check which, as we have seen, is equivalent to cash

On the other hand, the seller cannot issue a receipt at the same time as the deed of sale upon receipt of a bank cheque, which, representing a mere promise of payment, necessarily postpones the fact of collection of the price.

What are the risks for the seller in accepting a check?

The seller who accepts a check as a means of payment assumes the risk that the same is not covered. In this case, he would be forced to take legal action against the buyer to obtain the termination of the purchase contract for non-fulfilment.

What are the problems that the buyer encounters in paying with a bank check?

The buyer who pays the price with a check will not be able to obtain a receipted sale. In this case, problems may arise when reselling the property. The potential buyer, or the bank financing the transaction, could raise objections against an unreceived sale. In this case, it will be necessary to collect the receipt from the seller who will certify that he has received the payment after the deed of sale.

The non-contextual receipt, however, gives rise to ancillary tax costs with respect to the contextual receipt. In fact, the tax law requires the payment of a registration tax equal to 0.5% of the receipted amount, a tax which is not due if the receipt is given at the same time as the deed of sale. In case of payment by cheque, what should be written in the deed of sale?

Assuming that payment by check prevents the seller from being able to issue a receipt at the same time as the sale, in this case it will be necessary to write in the act that the credit / debit of the sum in the respective current accounts of the contracting parties will constitute proof of payment.

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