RealEstate Escrow
     
  Advantages of Real Estate Escrow
 
Risk Avoidance
  Avoidance of bankruptcy risk after a deposit is paid
  Avoidance of risk of mortgage cancellation
  Avoidance of risk of change in ownership
Security of funds to respond to various transactions
Response to bulk settlement
 
     
 
  ( Escrow of Sales Proceeds )
 
Conclusion of real estate sales agreement
Conclusion of trust agreement by the 3 parties of buyer, seller, and Yamada Escrow and Trust (The buyer entrusts purchase price, and the seller entrusts documents required for ownership transfer to Yamada Escrow and Trust respectively).
Delivery of application documents to mandatory judicial scrivener
The mandatory judicial scrivener applies for registration.
Registered documents are submitted to Yamada Escrow and Trust
Sales proceeds are paid to the seller
New registration identification information notice is delivered to the buyer
 
 
  ( Escrow of Deposit )
Conclusion of real estate sales agreement
Conclusion of trust agreement by the 3 parties of buyer, seller, and Yamada Escrow and Trust
The buyer entrusts deposits to Yamada Escrow and Trust.
At the time of delivery of property, the buyer pays the remaining amount to the seller.
Deposits are paid to the seller at the time of the settlement of the remaining amount.
   
 
( Escrow of Guarantee against Real Estate Defects )
*In a case of soil contamination
 
Conclusion of sales agreement between the seller and the buyer of the land for which a soil contamination survey, etc., is not yet conducted.
Conclusion of trust agreement by the 3 parties of buyer, seller, and Yamada Escrow and Trust
On the transaction settlement date, the buyer pays the amount after deducting the defect warranty retainage from the total sales proceeds of land.
The buyer entrusts the defect warranty retainage to the trust company.
* Yamada Escrow and Trust safe-keeps it until the survey by a survey company is completed.
The buyer reports the details of the survey results.
The seller gives consent to the above report.
The buyer instructs Yamada Escrow and Trust to settle the defect warranty retainage.
Yamada Escrow and Trust pays to the seller the remaining amount of real estate sales proceeds after deducting the final retainage.
If the balance remains after the payment above, the remaining amount (this is the amount equivalent to the defect warranty) is paid to the buyer.
 
 
Tips on Use of Escrow in Real Estate Transactions
You wish to secure funds until cancellation of registration is confirmed such as seizure, provisional disposition, or provisional registration, etc., in a transaction of property for which a registration is filed such as seizure, provisional disposition, or provisional registration, etc.
You wish to settle in a safe and secure manner in property transactions in which various security rights such as mortgages, and leasehold rights, etc., are registered.
You wish to avoid a cancellation risk of a high value property transaction up to settlement due to uncertainty over the buyer's fund raising from the seller's viewpoint.
You wish to settle and transfer ownership in a secure manner if you feel uneasy for the first real estate transaction.
You wish to secure funds until completion of inheritance registration in a transaction in which the property is not registered for inheritance.
You wish to secure a transaction against risks arising from the seller's sales environment such as rushed sales, etc.
(to respond to the risk of seller's bankruptcy after the receipt of deposits).
You wish to use escrow for a transaction with a long-term settlement period such as development property, etc.
(transactions such as redevelopment, buying up of land, and property surrender, etc.)
You wish to retain a part of deposits and settlement proceeds until the completion of survey or treatment of soil contamination, etc.
You wish to use it to compensate tenant rents in a transaction of income-producing property
(to compensate in case the rents are lower than scheduled rents for certain period).
You wish to keep bid bond money when conducting competitive bidding.