RERA Law
Escrow Account
A bank account held by a neutral third party, into which funds are deposited and released only once specified conditions of a transaction are met.
Escrow arrangements are commonly used in real estate and other significant transactions to give both parties assurance — the buyer knows funds won't be released until agreed conditions are satisfied, and the seller knows the funds are genuinely available and committed.
RERA specifically mandates developers to maintain a designated escrow account for a percentage of funds collected from homebuyers, meant to be used only for that specific project's construction.
Need a RERA lawyer?
Browse RERA Lawyers