An escrow is a financial arrangement where a neutral third party (escrow agent) safeguards the assets/funds until the parties involved fulfill their obligations.
Under an escrow, the transacting parties are assured of:
a. Protection of each party’s rights and interests to the transaction;
b. Relief from the burden of monitoring compliance by each party’s obligations under the agreement
c. Professional administration of the assets/funds ensuring that the same are released to the designated party only upon the satisfaction of the terms and conditions of the agreement;
d. Prudent management of the funds under escrow and generation of potential earnings during the effectivity of the arrangement; and/or
e. Compliance to regulatory requirements for property developers and manpower agencies deploying workers abroad
China Bank – Trust and Asset Management Group (CBC-TAMG) offers the following types of escrow services depending on your transactional need:
a. Buy and Sell
To ensure the delivery by the Seller of an asset for sale and the payment by the Buyer of the specified amount
b. Capital Gains Tax (CGT)
To comply with the requirements of the Bureau of Internal Revenue (BIR) in order to avail of the applicable CGT exemption
c. Department of Human Settlements and Urban Development (DHSUD)
To comply with the conditions set by the DHSUD for the developers' participation in the socialized housing project of the DHSUD and/or granting a developer’s a license to sell
d. Department of Migrant Workers (DMW) (formerly Philippine Overseas Employment Administration)
To comply with the requirements of DMW for license applications and renewals of both land-based and sea-based manpower agencies
CBC-TAMG may also facilitate customized escrow arrangements based on the requirements of the transacting parties
The minimum transaction or deposit amount for escrow services varies per type of arrangement.
a. Buy and Sell
Based on the amount agreed upon by the Buyer and the Seller
Per current BIR rules, 6% of the gross selling price of the principal residence or current fair market value, whichever is higher
Based on the approved amount computed by DHSUD
Minimum of Php1.0 million to be topped up in every instance a reduction is made
CBC-TAMG charges a fee depending on the type of escrow arrangement. Other costs and expenses related to the transaction shall be handled and facilitated by the transacting parties outside the escrow arrangement.
*Certification is to be fulfilled by bank personnel (for Individuals) and the Corporate Secretary of the Corporation (for Corporate clients)
Additional documents may be required depending on CBC-TAMG’s evaluation of the escrow transaction.