{"id":129,"date":"2009-09-22T20:37:36","date_gmt":"2009-09-23T03:37:36","guid":{"rendered":"http:\/\/thailand-realestate.com\/blog\/?p=129"},"modified":"2012-04-02T13:23:09","modified_gmt":"2012-04-02T20:23:09","slug":"the-escrow-act-b-e-2551","status":"publish","type":"post","link":"https:\/\/www.thailand-realestate.com\/blog\/the-escrow-act-b-e-2551\/","title":{"rendered":"The Escrow Act B.E. 2551"},"content":{"rendered":"

The Escrow Act B.E. 2551 (\u201cEscrow Act\u201d) came into effect on May 20, 2008.\u00a0 The Escrow Act applies to any reciprocal contract; although, it is not mandatory to use the services of an escrow provider.\u00a0 Prior to the Escrow Act, there were no specific escrow regulations in Thailand.\u00a0 Rather, the parties used the laws of agency to accomplish an escrow system.<\/p>\n

Commercial banks, financial institutions or any juristic persons prescribed in the relevant ministerial regulations licensed by the Ministry of Finance are eligible to act as escrow agents.\u00a0 The escrow agent must further be a neutral party and have no connections to any \u201cconcerned party,\u201d either directly or indirectly.\u00a0 The escrow agent cannot be, for example, also the bank for the developer.\u00a0 Operating without an escrow license subjects the actor to a fine of not more than 1 million THB.<\/p>\n

The escrow agreement must contain the following provisions.<\/p>\n

    \n
  1. Name and address of the parties and the escrow agent;<\/li>\n
  2. Execution date of the escrow agreement;<\/li>\n
  3. Title of the reciprocal agreement between the parties;<\/li>\n
  4. Terms or conditions for the delivery of escrow assets;<\/li>\n
  5. Requirements for payments out of the escrow account;<\/li>\n
  6. Rights and obligations of the parties and the escrow agent;<\/li>\n
  7. Remuneration and other fees related to performance under the escrow agreement; and<\/li>\n
  8. Other particulars as further specified in the Notification of the Escrow Committee.<\/li>\n<\/ol>\n

    The escrow agent has the duty to draft and prepare the escrow agreement.\u00a0 It is likely, however, that sophisticated parties will prepare the escrow agreement for the review and approval of the bank or other escrow agent.<\/p>\n

    When an escrow agreement has been terminated, the escrow agent must transfer the monies and interest in the escrow account to the proper party, pursuant to the escrow agreement, within 30 days.\u00a0 The termination of the escrow agreement does not affect the right of the escrow agent to receive remuneration and fees for the acts performed, unless the termination is the fault of the escrow agent.<\/p>\n

    When the escrow agreement has ended and the monies have been transferred in full from the escrow account, the escrow agent must close the account and notify all parties.<\/p>\n","protected":false},"excerpt":{"rendered":"

    The Escrow Act B.E. 2551 (\u201cEscrow Act\u201d) came into effect on May 20, 2008.\u00a0 The Escrow Act applies to any reciprocal contract; although, it is not mandatory to use the services of an escrow provider.\u00a0 Prior to the Escrow Act, there were no specific escrow regulations in Thailand.\u00a0 Rather, the…<\/p>\n","protected":false},"author":10,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[17],"tags":[31,20,22,18],"aioseo_notices":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.thailand-realestate.com\/blog\/wp-json\/wp\/v2\/posts\/129"}],"collection":[{"href":"https:\/\/www.thailand-realestate.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thailand-realestate.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thailand-realestate.com\/blog\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thailand-realestate.com\/blog\/wp-json\/wp\/v2\/comments?post=129"}],"version-history":[{"count":0,"href":"https:\/\/www.thailand-realestate.com\/blog\/wp-json\/wp\/v2\/posts\/129\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.thailand-realestate.com\/blog\/wp-json\/wp\/v2\/media?parent=129"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thailand-realestate.com\/blog\/wp-json\/wp\/v2\/categories?post=129"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thailand-realestate.com\/blog\/wp-json\/wp\/v2\/tags?post=129"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}