Are you planning on buying a house, any time soon? Are you aware about all the things that you need to know before going ahead with the transaction? It is imperative that you are aware about the role of an Escrow Account in property transactions. So, let’s begin with what exactly is Escrow and why is it so important while buying or selling a property. Let’s assume that you are selling your old property to move in to a new one. You have a genuine buyer who seems interested. You both settle the deal. Finally, the down payment gets transferred. For some reason, the buyer does not intend on buying the property anymore. So, what do you do? If you are not using an Escrow service, it will lead to litigation. However, this situation can be avoided if you choose to be Escrow-Ready, a little ahead of time. Escrow helps the buyer and seller by protecting the down payment of the buyer, so that everyone gets what they deserve as per the signed agreement.
Escrow brings in trust, which is why it can be said that with Escrow, you can be tension free. As in: “Na Chinta Na Darr”. There were several cases where potential buyers of properties either faced multiple delays in the possession of the agreed property or had their arms twisted with false promises that were made to them. For that reason, using Escrow account before carrying out any property transaction is pivotal.
Escrow accounts are mandatory form of transactions abroad but for India it is fairly new. Government of India has made “escrow” mandatory under the RERA Act for benefit of property buyers. Resale property market is still not covered under RERA which means that as a buyer you are on your own. Searching Google, few listings for digital escrows comes up, and I am sure someone can be your savior in the largest deal of your lifetime.
In the end, escrow is a proven concept and will work wonders for your deal. If you are not able to find a good escrow service, you should check with your circle of family and friends, who may have used an escrow account. A referral works best in property transactions. A good property agent just may be able to help you. Ask your agent, if he sells escrow account for buyer deposit protection. If your agent has not heard about the term escrow, you may choose not to work with him. Escrow account is a ‘must have’ for your property transactions.