The linked notary account (escrow account) is now regulated.

The National Council of Justice (CNJ) published Provision No. 197 in 2025, which represents a significant milestone in the modernization of Brazilian extrajudicial services by regulating § 1 of art. 7-A of Law No. 8,935/1994, establishing the linked notarial account service.

This provision, published in the Electronic Official Gazette on June 16, 2025, establishes procedures for the deposit, administration, and conditional movement of funds by notaries public, significantly expanding the scope of these professionals’ activities.

The linked notarial account functions as a kind of escrow account [1] , allowing notaries public to act as custodians and administrators of financial assets related to private legal transactions.

The official announcement took place during the Northern Notarial Meeting promoted by the Brazilian Notarial College in Manaus, when Minister Mauro Campbell formally presented this innovation to the Brazilian notarial system.

One of the most relevant aspects of the provision is the asset segregation of deposited funds, ensuring that the resources in the linked notarial account are protected and do not become confused with the assets of the notary, the parties involved, or the notary’s office itself. This protection provides maximum security to transactions, ensuring that the money will be available exclusively for the purpose agreed upon by the parties and cannot be seized for debts unrelated to the specific legal transaction.

To operationalize this service, the Provision mandates that the Brazilian Notarial College – Federal Council (CNB/CF) establish agreements with financial institutions, setting clear procedures for opening and managing these accounts.

Notaries, acting as agents of preventive legal security, verify the identity of the parties, the regularity of representation, perform notarial qualification, and verify the legality of the object of the transaction, preventing fraud and guaranteeing the validity of the acts.

This service is particularly useful in complex transactions, such as the purchase and sale of real estate, where payment and property transfer need to occur simultaneously and securely. Let’s look at the possible uses:

Real Estate Transactions

• Payment Guarantee : The buyer deposits the amount into the notary’s account, which is only released after confirmation of the property transfer.

• Debt Payment : Funds for settling mortgages, taxes, and other outstanding debts can be reserved and automatically allocated.

• Complex Transactions : In deals involving multiple properties or parties, funds can be released according to a pre-established schedule.

Business Operations

• Mergers and Acquisitions : Payment guarantee in transactions involving the purchase of companies or equity stakes.

• Earn-out : Management of payments contingent on future results.

• Shareholders’ Agreements : Deposit of amounts related to stock purchase and sale options.

Family and Succession Agreements

• Divorces : Management of amounts to be divided according to an approved agreement.

• Extrajudicial Inventories : Management of amounts to be distributed among heirs.

• Donations with Charges : Guarantee of compliance with conditions established in donations.

CNJ Provision No. 197/2025 represents a significant advance in the modernization of Brazilian notarial services, aligning the country with international best practices. The linked notarial account combines elements of various global models, adapting them to the Brazilian reality and the specific needs of the national market.

By incorporating the security of European systems with the flexibility of North American models, Brazil establishes a regulatory framework that enhances the reduction of judicial disputes, increases legal certainty, and streamlines complex transactions. The rigorous oversight by the Courts of Justice will ensure compliance and transparency in the administration of these funds, and the segregation of assets guarantees the necessary reliability for the consolidation of this important instrument.

As the system develops, the incorporation of technological innovations and the continuous improvement of procedures, inspired by international best practices, tend to further strengthen the role of notaries as agents of preventive legal security within the Brazilian legal system.

---

[1] An escrow account (or security account/custody account) is a financial mechanism that functions as a neutral intermediary for transactions between two or more parties. Essentially, it is an account held by a trusted third party (the escrow agent) that temporarily holds funds or assets until certain contractual conditions are met.