Using Escrow in Thailand gives greater protection of both parties’ interests with the assurance of compliance with the contract terms and conditions.
Escrow is a financial arrangement whereby an unbiased third party holds an asset or fund until both transacting parties have fulfilled their agreements.
An individual or company uses escrow when they feel uncertain whether one party will be able to complete a transaction. When you enter into an escrow agreement, whether as a buyer, seller, or lender, you establish confidence that contract terms will be followed. Hence, it ensures a fair and smooth transaction from start to completion.
Only commercial banks, finance companies or juristic persons, may hold an Escrow License from the Ministry of Finance.
An escrow provider must not have any direct or indirect interest in the transactions of the parties to the agreement.
Escrow is usually associated with real estate, but it also relates to other financial deals such as online trades, investments, mergers and acquisitions, and many more, where either party needs reassurance that the transaction is secured and can be completed. Having these funds in a neutral account protects both parties by making sure that the transaction happens.
The escrow service provider will not disburse the funds to the seller and then returns the funds to the buyer.
There shall not be any transfer funds or property to either party until both parties settle to an agreement or under a court order.
The funds in the escrow account and the property under enforcement will be protected against attachment or seizure.
