COMMITTED TO HELPING YOU GET THE PROPERTY YOU DESERVE
While driving the other day, my cousin who was left with some real estate property after the demise of her husband last year called me up to ask about escrow. I have encountered this term way back when I was still in the insurance industry and came back to my consciousness when I ventured into real estate business after passing the licensure examinations for real estate brokers in 2012. I don't care much about this for I understand escrow banks or agents do not exist (I'm not sure if they do) in the Philippines for real estate transactions. At best banks do some escrow transactions but not in the real sense of the word unlike in the U.S where escrow agents abound. Going back to my cousin's query, she told me that they have a buyer for a piece of property they own along with her departed husband's siblings and the buyer inroduced to them the idea of escrow which they know nothing about. The little knowledge of this I shared telling her that it is in the best interest of both the buyer and the seller that they engage the services of a bank which caters to this kind of transaction for the safety of both parties. I could not go into details for fear of giving her unverified information.
Upon arriving home, immediately I researched on the word and here's what I found out more -- Definition of ESCROW - generally defined as a deed or a written type of obligation, delivered to a third person, to be delivered by him to the grantee only on the performance or the fulfillment of some conditions. The deposit of the escrow places it beyond the control of the grantor, but no title passes to the grantee until the fulfillment of the conditions set forth in the instructions.
In short as I was telling my cousin, the very essence of this escrow is the safety of both parties involved in the transaction. I will follow this up in the next blog that I will be writing. Meantime let me get back to my bread and butter activity -- brokerage and project selling