What exactly is escrow and how does it work for the purchase of a preconstruction Bell Air Condo? Escrow or a Trust (Fideicomiso) refers to a neutral third party that is responsible for transferring or exchanging assets, usually property and money. There are Escrow Companies who are responsible for housing the account and your payments. Bel Air pre construction condos are hold by an Escrows company in Mexico named Dextra de Occidente S.A. de C.V. SOFOM E.N.R.
When you purchase a preconstruction property, after purchase contract has been sign. Down payment and balance payments deposits will keep in safe in the escrow account until the seller deliver the condominium to the buyer.
After a certain amount of time according to conditions of the purchase contract and when the condo it’s paid 100%, the deal is said to close in which case the buyer receives the title of the property.
The escrow account is used as protection to both the seller and buyer. If something were to go wrong during the escrow period, the seller would simply get the title back from the account and the buyer is in no danger of losing the funds. This eliminates a seller losing the property or buyer losing funds, and protects the assets of both parties.
It is highly recommended that you always use an escrow when purchasing property. Because it is a neutral third party and the escrow company really does not have a personal interest in the deals that are occurring, you can consider it a safe place for your assets until the deal is complete.