Escrow Account

[fullmonty]

A friend who is purchasing a house locally here in Almuñécar has a problem with final certification. She does want the particular house but is hesitant in handing over the deposit when the Certificate of Occupancy is not forthcoming. (Bureaucratic delays she is told)

She has suggested to the estate agents that the deposit is put into an escrow account until the final Town Hall certification arrives. Does anyone know:

a) Would a bank normally offer this faciltiy?
b) Do they charge a lot for doing it?
c) Anyone got any experience of this?

Thanks in advance

Dave

[ian.wilson]

Most good lawyers offer this service, don`t know if it`s called escrow. Just a lawyers bank account in your name so they lawyer can`t touch it. It can only be touched on your authority.

Regards
Ian

[Beachcomber]

There is often a problem with the Certificate of First Occupation especially with properties which are built on incomplete urbanisations.

Many Town Halls will not issue the certificate until the infrastructure has been completed and many even ban the physical occupation of the property albeit that the ban is widely ignored and unenforcible in practice.

I would be reluctant to leave any money in the hands of a lawyer (in fact I wouldn't even consider it as an option) and it would be quite legitimate for the purchaser to retain a proportion of the funds in his own possession until the certificate is forthcoming.

[fullmonty]

Hi Beachcomber and thanks for that. A susbstantial sum is being retained - but since the house is quite expensive the requested deposit is also quite a sum.

I know your long seated objection to lawyers and I am with you in that. However the suggestion that the account is in your own name and cannot be touched by the lawyer seems to make it safe - surely?

[Beachcomber]

One would have thought so but ask the clients of Fernando del Valle what has happened to their money. They may get it back but it could take years of legal wrangling. I wouldn't trust any of them to look after my budgie let alone my money.

Another option is an aval with your bank. This means that the funds remain in your own bank account but you do not have access to them until the aval is released. Check with your bank for details.