Escrow — what it means
Escrow is an account with an independent agent that releases funds to the seller only when deal conditions are met. It is not mandatory in Thailand and less common than in Europe, but sensible insurance for large or resale deals.
How an escrow account works
The buyer pays not the seller directly but into an account held by an independent escrow agent. The agent releases the funds to the seller only once the agreed conditions are met — for example, registration of the transfer of title. If the deal falls through, the money returns to the buyer under the rules written into the escrow agreement, not at the seller’s goodwill.
Escrow in Thailand
Thailand has an escrow law, and the service is provided by licensed agents — most often banks. Escrow is not mandatory in property deals, so in practice it is used less than in Europe or the US. In off-plan purchases it is partly substituted by tying payments to construction stages, but that is not the same thing.
How this works with us
For large deals and resales we raise escrow, or equivalent protection mechanisms, at the structuring stage: who acts as the agent, on what conditions the funds are released and who pays the commission. If the parties decline escrow, we tie payments to verifiable events — registration of title, handover of documents.
Frequently asked questions
Is escrow mandatory when buying property in Thailand?
No, the law does not require escrow in an ordinary deal. It is a voluntary mechanism the parties agree on in the purchase contract.
Who can act as an escrow agent in Thailand?
Licensed organisations — in practice, most often banks. The agent’s commission and the release conditions are fixed in the escrow agreement before any money is paid in.
See it on a real property
Terms matter when there is an actual deal behind them. We will show how this one works on a project from the catalogue — documents and numbers included.
Browse the catalogue