Escrow Accounts in Thailand

Escrow Accounts in Thailand. Escrow accounts offer a secure way to conduct financial transactions in Thailand, protecting both buyers and sellers. Here’s a breakdown of how escrow works in Thailand, including its prevalence and the authorized institutions that can handle it.

What is Escrow?

In essence, escrow involves holding funds in a neutral account by a third party until certain conditions are met. This ensures both parties fulfill their obligations in an agreement before any money is exchanged. It’s particularly useful for transactions where a large sum of money is involved, reducing the risk of fraud or breach of contract for either side.

Escrow in Thailand

While the concept of escrow exists, its usage in Thailand is not as widespread as in some other countries. The Escrow Act of 2008 established a legal framework for escrow services, but its implementation hasn’t been uniform across all banks. Additionally, not all developers are enthusiastic about escrow, as it limits their access to upfront deposits.

Who Can Offer Escrow Accounts?

Only authorized financial institutions and commercial banks can legally provide escrow services in Thailand. These include major players like Bangkok Bank, Kasikorn Thai Bank, and Siam Commercial Bank. It’s advisable to confirm with your chosen bank whether they offer escrow services and for what types of transactions.

Common Uses of Escrow in Thailand

Escrow accounts are most commonly used in real estate transactions, particularly for purchasing property from developers. They can also be used for other high-value transactions like business acquisitions and international trade deals.

Benefits of Using Escrow

  • Enhanced Security: Escrow safeguards both parties by ensuring funds are released only upon completion of agreed-upon terms.
  • Dispute Resolution: If a disagreement arises, the escrow agreement outlines the process for resolving it.
  • Peace of Mind: Escrow minimizes the risk of losing money due to fraud or incomplete transactions.

Challenges of Escrow in Thailand

  • Limited Availability: Not all banks offer escrow services, and some developers may be resistant to using them.
  • Potential Costs: Escrow services may incur additional fees for both buyer and seller.


While escrow usage in Thailand is evolving, it offers valuable security for significant transactions. Understanding how escrow works and which institutions can handle it empowers you to make informed decisions for secure financial dealings in Thailand.

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