中易安
Escrow for Resale and Refinance Transactions
中易安
Escrow for Resale and Refinance Transactions
Escrow for Resale and Refinance Transactions
Escrow account is a neutral independent account that is used as a tool to protect the interest of each party involved in the transaction. Escrow provides safekeeping to the funds used in the process of purchasing, selling, or refinancing the property. According to regulatory requirements of the Beijing Construction Committee, the People’s Bank of China, and Beijing Real Estate Agent Association, starting June 15th 2007, all the monetary transaction of property deals conducted via real estate agents are required to go through a escrow held by guaranty company. Real estate agencies are no longer allowed to handle the money transfer. These regulatory requirements provide maximum security to the safety of the funds in the transaction.
The two parties can deposit the fund into the escrow account. The fund can not be withdrawn by any party without the concession from both parties or the Title Transfer Complete Certificate issued by the Beijing Construction Committee. After title transfer is completed, the fund in the escrow will be transferred to the property owner’s account. This process reduces the potential risk of purchasing party not receiving the title after payment and of selling party not receiving fund after title transfer is completed.
Copyright 2007, First Title All Rights Reserved.