Construction Escrow

An escrow agent real estate market is an agent that is responsible for keeping track of money and property pending completion of other conditions by the parties to the contract. This method is good risk management.

Generally, the seller of a parcel of land or a house would an escrow agent (neutral agent) to hold title to the buyer and lets the escrow agent holding the deposit payment. The Escrow Agent shall release the title (plus arrange for the transfer of title to property) to the buyer and the hand of the seller to deposit the performance of contractual conditions. This minimizes the risk of the buyer loses the deposit money to the seller if the seller fails to sell the property to the buyer on the agreed day of the sale due to: the seller then find another buyer who is willing to pay higher purchase price, the seller can not complete construction of the property for sale, the seller disappeared with the deposit money, the seller can not release the mortgage or other types charges attached to property, etc. In addition, the involvement of an escrow agent protects the seller and the buyer from other types of fraudulent practices and misleading.

In Thailand, however, the Escrow Agent service has never been offered only by commercial banks or financial institutions because there were no laws or specific regulations until 19 May this year. Under the Act's commitment to corporate BE 2551 (2008), effective May 19, 2008, an escrow agent must be a financial institution, a commercial bank, finance company or other person moral prescribed under ministerial regulations.

Some of the important provisions under the Act are as follows: A contract escrow shall be written, signed by the seller, the buyer and the escrow agent, and should set certain conditions. The Escrow Agent shall be a neutral party with no connection whatsoever either the seller or buyer. The Escrow Agent shall open a blocked bank account for the contractual parties with a financial institution and deposit the money held in bank accounts blocked. In the event the Escrow Agent shall be deemed a debtor under a court order of execution, all property, money or title / other legal documents of contracting parties that are held by the "Escrow Agent shall be protected and will not cease or use in payment of the Escrow Agent of the debt. The Escrow Agent shall inform the official and the Land Office in writing that the sequestration of property is a contract and the transfer of ownership is not authorized until the Escrow Agent provides office Land of a written notice authorizing the transfer of ownership. An official of the Land Office shall make a record of such evidence. If there is a disagreement between buyer and seller under the escrow agreement, Escrow Agent shall not transfer money or property to any party until Parties have concluded an agreement or by court order.

Under the law, a financial institution, commercial bank or finance company that wants to operate as an escrow agent must be licensed by the Ministry of Finance to provide a service to the Escrow Agent. The application and the granting of this license meets the standards, procedures and conditions prescribed by ministerial regulations. To date, no licenses have been granted to any financial institution, commercial bank or finance company to offer services escrow agent. There may be some time until we will be able to find an escrow agent in a property transaction.

Tip

This means that we still have to use other types of protective measures, such as during a sale and purchase of a property, the seller and the buyer to open a joint bank account where the deposit money will be paid by the buyer in. The withdrawal or deposit of money from the bank account can be m.