Bank Guarantees and Escrow for the Seller (730)

When selling an apartment in Israel, it is important to understand how bank guarantees and escrow accounts work to minimize financial risks for the seller.

Proper use of these tools ensures a secure transaction and timely receipt of funds.

What Is a Bank Guarantee

A bank guarantee is a commitment by a bank to pay a specified amount if the buyer fails to fulfill their obligations.

For the seller, this means:

• protection against non-payment;
• ability to plan finances safely;
• confidence that funds will be received once contract conditions are met.

What Is Escrow

Escrow is a special bank account into which the buyer deposits money, and the bank holds it until all conditions of the transaction are met.

For the seller, this means:

• funds are released only after documents and keys are transferred;
• reduced risk of delays or disputes;
• transparency of payment process.

Main Advantages for the Seller

1. Reduced Financial Risk
   Bank guarantees and escrow protect against buyer default or unforeseen issues.
2. Transparency of the Transaction
   All parties know when and how funds will be transferred.
3. Faster Process
   With a clear payment structure, the seller can plan next steps confidently.
4. Support in Case of Dispute
   The bank can act as a guarantor, reducing the need for court involvement.

How to Use Correctly

• Discuss with a lawyer or Unehasim specialist which tool is suitable for your transaction.
• Ensure that the conditions of the bank guarantee or escrow are clearly stated in the contract.
• Keep all documents confirming fund deposits and fulfillment of conditions.
• Verify the reputation of the bank or financial institution holding the escrow.

Tips from Unehasim

• Use escrow or bank guarantees for high-value transactions.
• Do not sign the contract without clear payment terms.
• Plan receipt of funds in advance to avoid delays.
• Seek Unehasim specialists’ support for transaction management and legal verification.

Contact Unehasim Specialists

If you are selling an apartment in Haifa, Unehasim can help:

• choose the optimal method for fund protection;
• prepare escrow or bank guarantee documents;
• manage the transaction until payment is received;
• minimize financial and legal risks.

Proper use of bank guarantees and escrow makes the transaction safe and transparent.