Escrow Accounts in Thailand
In the landscape of Thai real estate and high-value commercial transactions, the term "escrow" often surfaces as a beacon of security. For foreign investors accustomed to the mandatory escrow systems of North America or Europe, the Thai approach can seem paradoxically modern yet underutilized. Understanding escrow in Thailand requires a deep dive into the Escrow Act B.E. 2551 (2008) , the specific roles of licensed financial institutions, and the practical hurdles of implementing these accounts in a market where developers historically rely on buyer deposits for construction liquidity. 1. The Legal Foundation: The Escrow Act B.E. 2551 (2008) Prior to 2008, Thailand lacked a specific statutory framework for escrow. Transactions relied on the Civil and Commercial Code (CCC) , specifically sections related to agency and deposits. However, these "pseudo-escrow" arrangements offered little protection if an agent turned out to be biased or insolvent. The Escrow Act B...