Escrow
A neutral escrow company (often US-based or cross-border) that holds your deposit and the balance until the deed is signed.
Why it matters
It's not legally mandatory, but it's strongly advised so you never pay the seller directly.
Who helps
An escrow company chosen in the promise contract.
What to do: Pay your deposit into escrow, never straight to the seller.
Documents
- The signed escrow agreement, the promise contract, and wire instructions (always confirm them by phone).
How the money moves (from a typical cross-border escrow agreement)
- First wire: the earnest deposit plus the non-refundable escrow fee. Often the closing attorney also asks for about half the estimated closing costs up front.
- Partial releases to the closing attorney before closing, to pay for certificates, the appraisal, the RNIE and trust fees, need your signed authorization. Ask for the itemized list first.
- Balance: due within about 5 business days of the notario's notice.
- Release to the seller only on joint written instructions from buyer and seller plus the notario's certification that the deed was signed.
- Refunds go only to the account the money came from (an anti-money-laundering rule).
- Instructions received after the daily cut-off are processed the next business day. Put the buyer's name in the wire reference.
Common mistakes
- Wire fraud. Never act on changed wire instructions that arrive by email alone.
- Releasing funds before the deed is signed.
- Daily wire limits at your home bank. Plan several wires, or ask your bank to raise the limit, well before the balance is due.
Say it in Spanish
- Los fondos se liberarán solo después de la firma de la escritura ante notario.
Funds will be released only after the deed is signed before the notario.
Terms
Confirm the details for your case with your notario or attorney.
Common questions
What is escrow and do I need it?
An escrow company holds funds until conditions are met. It's optional but common for cross-border purchases.