An escrow agent is the neutral third party — typically an accredited bank — that holds and controls funds in an escrow account, releasing them only when the agreed conditions are met. For off-plan projects, the escrow agent is a regulated, approved institution.
Where you’ll see it
You’ll see the escrow agent managing an off-plan project’s account, verifying construction progress before releasing developer payments. In other transactions, an escrow agent may hold funds pending completion or conditions.
Why it matters
The escrow agent’s independence is what gives escrow its protective value. By controlling releases against verified conditions, the agent ensures neither party can simply take the money — a key safeguard for buyers’ instalments in off-plan projects.
What it is not
An escrow agent is not the developer, the seller or the buyer — it must be neutral. It is also not a broker; its role is custody and controlled release of funds, not negotiating the deal.
Example
For a registered off-plan project, an approved bank acts as escrow agent, holding buyers’ payments and releasing tranches to the developer only as each construction milestone is confirmed.
Connected documents and parties
Escrow agreement, release records; escrow agent (bank), developer/seller, buyer, RERA.
Going deeper: related reading: developer escrow accou
Related Terms
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