Kasikornbank as first escrow agent bank
Kasikornbank has forged the first escrow accounts with six property developers, being the first bank to enter into the service to ensure homebuyers of full refunds should the developers fail to honour their promises.
Pridi Daochai, senior executive vice president, said that
those buying residential units from the six companies can use the bank's guarantee service.
The six companies include Kanda Decor Co Ltd, Chalermnakorn Co Ltd, Tararom Enterprise Plc, Thanasiri Group Plc and Supalai Plc.
As the escrow agent, KBank will take care of buyers' downpayment. When the purchased units are ready for transfer, the downpayment would then be transferred to the developers. Should any dispute occurs between the seller and buyer, such fund would be kept at the bank until a settlement is reached.
The escrow account law has been effective for years, following growing complaints from homebuyers after the 1997 financial crisis. Then, a large number of developers took away downpayments.
