What are the advantages of escrow design?

In what cases an escrow agreement is preferable to other types of transactions? It gives clear benefits in several situations.

For example, when there is an “exclusive” legal regulation established by law for the property being deposited.

Or when it is necessary to independently determine the basis for full payment. An escrow agent performs a compliance check on the fact of the property specified in the list or the occurrence of legal actions, for example, a change of management or shareholders.

When concluding an escrow-agreement, the beneficiary is insured against default by the depositor, regardless of the complexity of his economic situation, force majeure, etc.

For the debts of the beneficiary, a claim is made on his claim to the escrow agent for the transfer of the deposited property. This scheme allows you to insure the safety of assets, for example, when buying a business or at different stages of a complex transaction.

This construction also works well under lease agreements, where part of the rent may be deposited, and the contract provides for the return to the tenant of this amount in the absence of damage to property during the lease. If the leased property is damaged, the lessor will receive the deposited amount. It will act as a kind of insurance against possible damage.

Escrow agreements are also convenient to use in inter-creditor agreements. The debtor reimburses the escrow agent's debt, and he acts as an intermediary distributor between creditors under the contract in fulfillment of obligations for debts.

Very important information for the beneficiary: it is impossible to collect, arrest or take other measures in respect of the deposited property on the debts of the depositor or escrow agent. The law determines this measure in respect of any property, therefore, the funds deposited are also protected.

 GAS is better than a civil law notary

Since I have been working in the real estate sector in the Russian market for many years, moving from the usual membership in the Alliance Family Club to shared ownership, I made such an analogy for myself. Registration of any transaction for the acquisition of real estate is carried out through a civil law notary. This is an essential condition for ensuring and confirming the legality of the transfer of property. In the Club, the similar notary functions are performed by Global Actual Services trust company, officially registered in the Kingdom of Thailand. However, I saw the progressivity of this Trustee in attracting the owners of the Club to participate in the management. No notary can offer his client access to the process of studying and obtaining information on his case. That is why we sometimes hear about the sensational cases of so-called "black notaries". The involvement of the Club members to shared participation in Global Actual Services excludes such a possibility, as each shareholder has access to all information related to the trust management of the Club's property.

Ernest Zabolotskiy (Russia) comments upon the advantages of shared ownership
The owner of a real estate Agency