Escrow Account in Thailand

Escrow Account in Thailand. While Thailand boasts a vibrant economy, real estate market, and international trade scene, ensuring secure transactions can be a concern. This is where escrow accounts come in, acting as a neutral third-party mechanism to safeguard funds in various financial dealings.

What is an Escrow Account in Thailand?

An escrow account is a specialized bank account held by a licensed financial institution. It temporarily holds funds from a buyer until specific conditions of a transaction are met, at which point the funds are released to the seller. This process protects both parties involved by:

  • Guaranteeing Funds: The buyer’s money is secured until the agreed-upon terms are fulfilled.
  • Preventing Fraud: The seller cannot access the funds until they deliver as promised.

Who Can Use Escrow Accounts in Thailand?

While traditionally associated with real estate transactions, escrow accounts in Thailand can be utilized for various purposes:

  • Real Estate: Escrow accounts are particularly common in property purchases, ensuring the buyer receives the title deed before releasing funds to the seller.
  • Business Acquisitions: Escrow safeguards funds during mergers and acquisitions, guaranteeing the seller receives payment upon completion of the deal.
  • International Trade: Escrow protects both exporters and importers by holding payment until goods are delivered and inspected.

The Legal Landscape:

The Escrow Act of 2008 governs the use of escrow accounts in Thailand. However, it’s important to note:

  • Limited Availability: Not all branches of authorized banks offer escrow services.
  • Developer Resistance: Some developers may be hesitant to use escrow due to delayed access to funds.

Benefits of Using Escrow Accounts:

Despite limitations, escrow accounts offer significant advantages:

  • Enhanced Security: Reduced risk of fraud and financial loss for both buyer and seller.
  • Transparency: Clear and documented terms ensure a smooth transaction process.
  • Dispute Resolution: The escrow agent can mediate if disagreements arise regarding the fulfillment of conditions.

Considering Using an Escrow Account?

If you’re involved in a high-value transaction in Thailand, here’s what to keep in mind:

  • Verify Bank Eligibility: Confirm if the chosen bank offers escrow services at the specific branch.
  • Consult a Lawyer: An experienced lawyer can advise on drafting a watertight escrow agreement outlining the terms and conditions.
  • Understand Fees: Escrow services typically incur fees associated with account setup and management.


Escrow accounts provide a valuable tool for mitigating risk and ensuring secure transactions in Thailand. By understanding their functionalities and legal aspects, you can leverage escrow accounts to safeguard your interests in various financial dealings.

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