The new government has just passed a new law to protect all property buyers by introducing the “Escrow Account Systems”. The commercial banks will be permitted to undertake “Escrow Account Business”. The advantage for the property buyer in using an escrow account is to protect the down payment. If the buyer outs the down payment in an escrow account, the developer cannot use that money until the developer fulfils certain conditions of the escrow agreement.
If the project is not completed within the time schedule, the bank who is the escrow agent will return the money to the buyer. Most developers will hate this new law because the down payment will go to the bank not the developer. The buyer will not have to sue the developer in the Court of Justice which will take more than a year.
This new law will boost the confidence of foreign property buyers in Pattaya. It will be beneficial to all of us who will live and die in this city of devil and deep blue sea.
