Escrow Account Services in Property Transactions
Definition of “Escrow”: A financial instrument held by a third party on behalf of the other two parties in a transaction. The funds are held by the escrow service until it receives the appropriate written or oral instructions or until obligations have been fulfilled. Securities, funds and other assets can be held in escrow.
“An escrow account can be used in the sale of a house, for example. If there are conditions to the sale, such as the passing of an inspection, the buyer and seller may agree to use escrow. In this case, the buyer of the property will deposit the payment amount for the house in an escrow account held by a third party. This assures the seller – in the process of allowing the house to be inspected – that the buyer is capable of making payment. Once all of the conditions to the sale are satisfied, the escrow transfers the payment to the seller, and title is transferred to the buyer.” Investopedia
In Thailand the law regulating the existence and use of escrows was introduced in December 2007 by the National Legislative Assembly. However though, due to the non-existence of the law of trusts here, the created discrepancies between common and civil law held back the formation of dedicated escrow accounts.
Shambhala Realty through its legal partners offers minor escrow account services to safely and effectively intermediate real estate transactions. Our fees are circumstantial, a factor of influence is the amount entrusted.
About the Author:
Sorin Gligore has more than a decade of experience in Sales and Entrepreneurship in South East Asia, has completed BA studies in Journalism and Social Studies and a MBA in Hospitality, currently co-owning Shambhala Realty Co., Ltd. in Bangkok