Economy, Business And Markets

Escrow Accounts Okayed

Escrow Accounts OkayedEscrow Accounts Okayed

Hamed Mazaherian, deputy minister of roads and urban development, said on Sunday that the banks, including Bank Maskan, have received CBI permission for opening escrow accounts, within their own internal terms and regulations. He said banks should develop their own set of rules for escrow accounts in accordance with the “law for home presales” and CBI guidelines, Mehr News Agency quoted him as saying on Sunday. An escrow account is a temporary pass-through account held by a third party during the process of a transaction between two parties. Deposits made by buyers of pre-sale housing units would be put in escrow accounts and will be paid to the constructor based on projects physical progress. This will considerably reduce shams and fraud in the construction sector and delivery of housing units, Mazaherian added.