Project finance using escrow is an important stage in the real estate industry that concerns each of us
In the summer of 2019, Russian developers switched from shared-equity construction to project financing using escrow accounts. This significant change is aimed at ensuring the safety and reliability of citizens' investments. There will be no more deceived shareholders, because now the developer receives money only after putting the house into operation on time specified in the project declaration.
But what is an escrow account and why is it needed when buying an apartment in a new building? Let us explain.
Escrow is a special bank account that is opened for settlements between the buyer of an apartment in a building under construction and the developer. When you deposit money into this account, it is frozen or, using professional terminology, escrowing. This means that the developer receives money for the property only after fulfilling all the conditions stipulated in the contract and putting the house into operation.
Thus, the escrow account ensures the security and reliability of the transaction for both the buyer and the developer. The buyer can be sure that his money will be used for its intended purpose and that he will receive an apartment in accordance with the terms of the contract. The developer, in turn, has a guarantee of receiving payment for his work after fulfilling all obligations.
This innovation is causing increasing interest among those who are looking for an apartment for themselves or their loved ones. After all, now the purchase of housing in a new building has become even more secure and transparent.
We hope that this information was useful to you. If you have any questions or would like to learn more about project financing using escrow accounts, feel free to ask them in the comments. We will be glad to help!
Are you looking for a new apartment in St. Petersburg? Don't know where to start? Don't worry, we will help you! «Nevsky Prostor» Real estate agency specializes in the selection of apartments in new buildings, and we know how to make the housing selection process easy and enjoyable.
We work only with trusted developers who guarantee the quality and timely completion of construction. Thanks to our experience, we know which of them offer the most favorable conditions, and we are ready to share this information with you.
When buying an apartment in a new building, it is important to be sure that the paperwork is correct. Our lawyers will provide you with comprehensive support and help you avoid any mistakes.
Do not postpone your new home for later, call us right now, and we will be happy to help you find and purchase the perfect apartment in a new building in St. Petersburg.
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