Escrow Accounts in Thailand

Escrow Accounts in Thailand

Escrow Accounts in Thailand. Thailand’s property market continues to attract both domestic and foreign investors. While exciting, real estate transactions can involve significant financial risk. Escrow accounts offer a valuable tool to mitigate this risk and ensure a secure exchange of funds.

What is an Escrow Account?

An escrow account is a neutral third-party account held by a licensed financial institution. Think of it as a temporary holding bay for funds until certain conditions are met. In a real estate transaction, for example, the buyer’s money is deposited into the escrow account. The funds are then released to the seller only after the property title is transferred to the buyer.

Benefits of Using Escrow Accounts in Thailand

Escrow accounts offer several advantages for both buyers and sellers:

  • Increased Security: By holding the funds in a neutral account, escrow protects both parties from potential fraud or breach of contract.
  • Peace of Mind: Knowing the funds are secure allows both buyer and seller to proceed with the transaction with greater confidence.
  • Facilitates Conditions: Escrow agreements can be structured to include specific conditions that must be met before the funds are released. This ensures both parties fulfill their obligations.

Who Can Offer Escrow Accounts in Thailand?

Traditionally, the use of escrow accounts in Thailand was limited. However, regulations have evolved:

  • Authorized Banks: Following the enactment of the Escrow Act in 2008, certain authorized commercial banks can now offer escrow account services. These include Bangkok Bank, Kasikorn Thai Bank, Siam Commercial Bank, and several others.
  • Limited Use: Despite the Act, the use of escrow accounts in Thailand remains less common compared to some other countries. Some developers may be hesitant, while legal frameworks are still under development.

Alternatives to Escrow Accounts:

If an escrow account isn’t available, alternative methods can provide some level of security:

  • Lawyer Held Deposits: A lawyer representing both parties can hold the deposit in a trust account until the transaction is complete.
  • Dual Agent Agreements: In specific situations, both buyer and seller can appoint the same real estate agent to act as a neutral intermediary holding the deposit.

Important Considerations

While escrow accounts offer advantages, here are some things to keep in mind:

  • Availability: Not all transactions or institutions may offer escrow services.
  • Costs: Escrow services may incur fees for both buyer and seller.
  • Legal Expertise: Consulting a lawyer experienced in Thai real estate transactions is crucial to ensure all agreements and procedures are followed correctly.


Escrow accounts can be a valuable tool for securing real estate transactions in Thailand. Understanding their benefits, limitations, and alternatives empowers you to make informed decisions and safeguard your investment. By consulting with legal professionals and exploring available options, you can navigate the property market with greater confidence.

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