Friday, March 27, 2009

Doing Business in Oman: Escrow Accounts

In Oman, an escrow account can be a useful tool in transactions involving the sale of property to ensure the safe and smooth closing of the sale.

The escrow account allows the purchase funds to be held separately until the satisfaction of some outside condition (such as the delivery of a title deed or other essential document). Once the condition is met, the funds are dispersed according to the terms of an escrow agreement.

The escrow agreement is an agreement that is entered into between a buyer, a seller and an escrow agent (such as a bank). The escrow agreement instructs the escrow agent when and under what conditions it should disperse the escrow funds to the seller, or return them to the buyer.