Bank Guarantees and Escrow: Seller Protection (750)

Seller relevance: high — proper use of financial instruments reduces risks and speeds up a safe transaction

Overview

When selling an apartment in Haifa, it is important to protect yourself from financial risks related to delayed payments or the buyer’s failure to fulfill obligations.
Bank guarantees and escrow accounts are two main tools that help safely complete the transaction and protect the seller’s interests.

Bank Guarantee

1. What it is
   • A bank’s commitment to pay the seller a specified amount if the buyer fails to meet the contract terms
2. Advantages
   • Protection from financial risks
   • Assurance of receiving funds
3. What to pay attention to
   • Terms and duration of the guarantee
   • The amount covered by the guarantee
   • Activation procedure and documents required to receive payment

Escrow Account

1. What it is
   • A special account where the buyer deposits funds, and the bank or notary releases them to the seller only after all conditions of the transaction are met
2. Advantages
   • Transaction security for both parties
   • Control over the fulfillment of contract terms
3. What to pay attention to
   • Parties authorized to manage the account
   • Rules for fund transfer
   • Conditions for returning or holding funds in case of issues

Practical Recommendations

• Use an escrow account or bank guarantee when selling a high-value apartment
• Agree with the buyer on the transfer and activation conditions
• Involve a lawyer or financial consultant to verify terms
• Ensure that documents and instructions are transparent and signed by both parties

Proper use of these instruments allows the seller’s money to be protected and the transaction to be completed safely.

Unehasim Tips

• Always clarify the terms of the bank guarantee and escrow
• Use only reputable banks and financial institutions
• Engage professionals for transaction support
• Inform the buyer about financial mechanisms to ensure transparency

Contact Unehasim Specialists

If you are selling an apartment in Haifa and want to ensure financial protection of the transaction, the Unehasim team can help:

• arrange a bank guarantee or escrow account
• review terms and documents
• support the deal from start to finish
• ensure a safe and transparent sale