When we talk about real estate issues, many terms come to mind
that are frequently used in real estate. Certain words create confusion and
They need to be resolved quickly for anyone who does not understand or know their meaning.
Normally foreign investors follow a purchase process that allows them
allows you to acquire properties in Mexico in a complex but safe way: the ESCROW.
It is a term widely used in investments due to its safe and reliable nature. A lot
People at this point may ask what is escrow and how does it work? Well
Well, broadly speaking, escrow is a mechanism used in a sale
to ensure that payment reaches the seller and that the product reaches the buyer.
Its method of operation is as follows: An escrow account has a
operation similar to escrow. This account is opened through an entity
financial The main difference with the trust is the ownership of the
goods. In a trust, the assets are transferred to the trustee and the trust entity itself
manages, in the escrow account the ownership of the account is maintained, however,
the holder cannot make movements in the account. The settlor takes the account and is
is created for a specific purpose, we could say that it is a bank trust where
there is no transfer of assets and goods but it is handled by the financial institution
who is in charge of the account (without losing ownership of the generator) and finally the
funds are delivered to the beneficiary according to the specifications that have been
placed in the escrow contract.
This type of account is very easy to implement and also represents a guarantee
when there are transactions, not only financial but also commercial. Are from
very common use, efficient and flawlessly meet the objective for which
were created.
Today this method of purchase is widely used and most entities
Finance companies have a department for these operations.