Off plan sale
Off-Plan Sale Escrow Account
Off-Plan Sale, Sale on Map, and Real Estate Escrow Account are different names for a bank account designated for under-construction property where the deal between developer and buyer happened based largely on development plans. All payments by buyers for the construction of the off-plan project are credited into this Escrow Account.
Riyad Bank, through its Off-Plan Sale Escrow Account, acts as an Escrow Agent and protects the interest of buyers and sellers of real estate projects.
Riyad Bank, through its Off-Plan Sale Escrow Account, acts as an Escrow Agent and protects the interest of buyers and sellers of real estate projects.
Benefits:
• Mitigating Risk for Developer – Escrow Agreements provide the Real Estate Developer customers safeguard when dealing with third party entities by mitigating counterparty risk and holding paid-in amounts in this account blocked for this purpose. The Developer receives payments to cater to the cash flow needs of the project.• Easily Manage Collections – This product can be combined with Riyad Collect in order to provide unique virtual IBAN to the end-buyer (Real Estate Developers’ customer). This also provides full visibility on transfers and ease of reconciliation for the developer.
• Mitigating Risk for Buyer – Escrow Account also provides security to the Buyer, because unless all the conditions are met on the “sale”, the funds are not released to the Developer.
3-Reporting – Customized reports of funds received and disbursed can be sent to Real Estate Developer.