Pattaya Daily News

29 January 2013 :: 12:01:09 pm 70975

Escrow Helps Home Buyers Protect Their Cash

The robust housing industry is experiencing some turbulence this year, as home builders scramble to keep up with strong demand for homes. As a result, sometimes housing units are unable to be completed by the anticipated date.
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“For the housing market this year, we had to watch over the construction, for homes that might be completed after the delivery date, or are presold but not built,” said Mr. Sophon Pornchokchai, the chairman of the Agency for Real Estate Affairs company (AREA).

A growing trend is for home buyers to safeguard their down payments by using the escrow system, in cases where their homes are not completed on schedule. With this system, a third party holds the down payment for the buyer, which will not be paid out to the builder until the home is delivered as promised.

At the end of 2012, an estimated 128,934 housing units have either been built or are still under construction. Of that number, only about a third are 100 percent finished. The rest are still being built, and some of them are scheduled for completion in 2014-2015.

“If we analyze those numbers, we see that more than 50 percent of homes are still unfinished,” Mr. Sophon said. “It is a risk that the buyer might not get the house by the time stated in the contract, since there are many factors that can affect construction such as labor shortages.”

For protection, Mr. Sophon now advises consumers to use the escrow system, which protects their down payments, and reduces the risk of buying a home but not getting the house later.

Photo : Internet   Category : Property

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