Kolaboro / Glossary / Escrow and deposit protection in off-plan property
Escrow and deposit protection in off-plan property
Escrow is an account held by a bank or another third party that releases the buyer’s money to the developer only when agreed conditions are met, usually stages of construction. Some countries require it by law for off-plan sales; others use a bank guarantee, an insurance policy or a notary’s or lawyer’s trust account instead.
| Market | Projects tracked | State how payments are protected | Share |
|---|---|---|---|
| Abu Dhabi | 20 | 18 | 90% |
| Dubai | 170 | 147 | 86.5% |
| Ajman | 6 | 4 | 66.7% |
| Cape Town | 7 | 4 | 57.1% |
| Medellín | 6 | 3 | 50% |
| Kuala Lumpur | 16 | 7 | 43.8% |
| Italy | 7 | 3 | 42.9% |
| Malaysia | 36 | 15 | 41.7% |
| Costa del Sol | 34 | 12 | 35.3% |
| Oman | 18 | 5 | 27.8% |
| Marrakech | 8 | 2 | 25% |
| Spain | 17 | 4 | 23.5% |
| French Riviera | 14 | 3 | 21.4% |
| Vietnam | 19 | 4 | 21.1% |
| Istanbul | 19 | 4 | 21.1% |
| Punta Cana | 10 | 2 | 20% |
| Hawaii | 5 | 1 | 20% |
| Paraguay | 5 | 1 | 20% |
| Saudi Arabia | 11 | 2 | 18.2% |
| Mauritius | 12 | 2 | 16.7% |
| Goa | 6 | 1 | 16.7% |
| Canary Islands | 6 | 1 | 16.7% |
| Puerto Vallarta | 14 | 2 | 14.3% |
| Bahrain | 7 | 1 | 14.3% |
| Costa Blanca | 15 | 2 | 13.3% |
| Bali | 93 | 12 | 12.9% |
| Lombok | 24 | 3 | 12.5% |
| Croatia | 8 | 1 | 12.5% |
| Antalya | 9 | 1 | 11.1% |
| Sydney | 9 | 1 | 11.1% |
| Balearics | 9 | 1 | 11.1% |
| Costa Rica | 11 | 1 | 9.1% |
| Montenegro | 11 | 1 | 9.1% |
| Riviera Maya | 24 | 2 | 8.3% |
| Koh Samui | 14 | 1 | 7.1% |
| French Alps | 14 | 1 | 7.1% |
| Ras Al Khaimah | 26 | 1 | 3.8% |
| Miami | 39 | 1 | 2.6% |
| Phuket | 39 | 0 | 0% |
| Philippines | 30 | 0 | 0% |
| France | 27 | 0 | 0% |
| Egypt | 20 | 0 | 0% |
| Sri Lanka | 19 | 0 | 0% |
| Greece | 19 | 0 | 0% |
| Pattaya | 18 | 0 | 0% |
| Cyprus | 18 | 0 | 0% |
| Georgia | 17 | 0 | 0% |
| Brazil | 17 | 0 | 0% |
| Los Cabos | 16 | 0 | 0% |
| Zanzibar | 15 | 0 | 0% |
| Cambodia | 14 | 0 | 0% |
| Gold Coast | 14 | 0 | 0% |
| Bangkok | 13 | 0 | 0% |
| Warsaw | 13 | 0 | 0% |
| Algarve | 12 | 0 | 0% |
| Japan | 12 | 0 | 0% |
| Ho Chi Minh City | 11 | 0 | 0% |
| Northern Cyprus | 11 | 0 | 0% |
| Nairobi | 11 | 0 | 0% |
| London | 11 | 0 | 0% |
| Sharjah | 11 | 0 | 0% |
| Malta | 10 | 0 | 0% |
| Lisbon | 10 | 0 | 0% |
| Mérida | 9 | 0 | 0% |
| Portugal | 9 | 0 | 0% |
| Poland | 9 | 0 | 0% |
| Panama City | 8 | 0 | 0% |
| Accra | 8 | 0 | 0% |
| Vancouver | 8 | 0 | 0% |
| Qatar | 7 | 0 | 0% |
| Manchester | 7 | 0 | 0% |
| Cape Verde | 7 | 0 | 0% |
| Bahamas | 7 | 0 | 0% |
| Toronto | 7 | 0 | 0% |
| Hua Hin | 6 | 0 | 0% |
| Albania | 6 | 0 | 0% |
| Bulgaria | 6 | 0 | 0% |
| New Zealand | 6 | 0 | 0% |
| Namibia | 6 | 0 | 0% |
| Cayman Islands | 6 | 0 | 0% |
| Tokyo | 6 | 0 | 0% |
| Lagos | 6 | 0 | 0% |
| Belize | 5 | 0 | 0% |
| Dominican Republic | 5 | 0 | 0% |
| Bodrum | 5 | 0 | 0% |
| Mexico City | 5 | 0 | 0% |
| Madeira | 5 | 0 | 0% |
| Liverpool | 5 | 0 | 0% |
| New York | 5 | 0 | 0% |
| Perth | 5 | 0 | 0% |
| Kigali | 5 | 0 | 0% |
| Berlin | 5 | 0 | 0% |
Markets with at least 5 projects in the count. Counted from what the developer or the sources we read publish, not a judgement of quality; each project page lists its sources.
The rules where we have read them
- Buying off-plan in Bali: where your money goes
- Buying off-plan in Dubai: where your money goes
- Buying off-plan on the Costa del Sol: where your money goes
- Buying off-plan in Lisbon: where your money goes
- Buying off-plan in Miami: where your money goes
- Buying off-plan in France: where your money goes
- Buying off-plan in Japan: where your money goes
- Buying off-plan in Poland: where your money goes
Questions and answers
What is escrow?
Escrow is an account held by a bank or another third party that releases the buyer’s money to the developer only when agreed conditions are met, usually stages of construction. Some countries require it by law for off-plan sales; others use a bank guarantee, an insurance policy or a notary’s or lawyer’s trust account instead.
In which markets do off-plan projects most often state how payments are protected?
In our data: Abu Dhabi 18/20; Dubai 147/170; Ajman 4/6.