Escrow ‘important’ for italy investors

Italy investors should start using escrow accounts for property transactions, claims one expert...

Whether you are the buyer, seller, lender or borrower, it is important to have the assurance that no funds or property will Change hands until ALL of the instructions in the transaction have been followed. The escrow holder has the obligation to safeguard the funds and/or documents while they are in the possession of the escrow holder, and to disburse funds and/or convey title only when all provisions of the escrow have been complied with.

Ewan McGarrie, chief executive of PropertyInvestment.co.uk, said: "What you should look at ideally, and this is something that not all developers have, is what's called an escrow account.

"This is where your money is held independently from the developer and this is something all investors, especially the more cautious ones, should always seek. That’s where your deposit money is held – therefore if the developer goes bankrupt, your money will be protected."