Uzbek Central Bank Caps Escrow Fees for Deals

Tashkent, Uzbekistan (UzDaily.com) — The Central Bank of Uzbekistan has set maximum commission fees that commercial banks can charge for escrow services in housing and vehicle transactions.

Mandatory use of escrow accounts will apply to sales contracts for real estate, as well as wheeled vehicles in categories M, N, O, and G not older than 10 years, including special-purpose transport. The new rules will come into force on 1 April.

Under the regulation, the maximum escrow fee for real estate transactions is capped at 50% of the base calculation value, equivalent to 206,000 soums at the time of publication. For vehicle transactions, the cap is set at 25% of the base calculation value, or 103,000 soums.

These limits apply only to nine state-owned or state-participation banks, including Agrobank, Aloqabank, Asakabank, BRB, Microcreditbank, the People’s Bank, the National Bank, Turonbank, and Uzpromstroybank. Other banks may determine fees based on their internal policies.

If both the buyer and seller use the same bank, the commission is charged once. When different banks are involved, each party pays half of the fee. In cases where a transaction is canceled or not completed, the funds are returned to the buyer.

The new measures follow a procedure approved by the Ministry of Justice on March 16 regulating the registration of housing and vehicle transactions. Under the updated system, notaries certify sale contracts only after receiving electronic confirmation of payment from the bank.

To make a payment, the buyer or their representative submits a written or electronic request to the bank, which accepts the funds in cash or via cashless transfer and places them in an escrow account. This account may be linked to a current bank account, card, or electronic wallet.

If a contract предусматривает installment payments, the initial deposit is placed in escrow. In cases involving loans, the bank sends a notification to the notary.

Once funds are secured, both parties proceed to the notary, who verifies the availability of funds and certifies the agreement. The money is then transferred from the buyer’s escrow account to the seller or their representative.