RE/MAX TANZANIA ESCROW SERVICES

To reduce risk and provide a safe keep for documents and funds in a global realm is the cornerstone of comfort and smooth transition of acquisition of your goods or assets. That’s why so many buyers and sellers turn to one Investment Holding Ltd (OIH) for Escrow Services. Our track record and speed of disbursement of funds are unmatched with any other competing escrow services in the region. Our regional team, from financial managers, attorneys, and real estate experts will help you develop an escrow transaction structure that will work for you. We act as an independent party to the transaction, holding assets in escrow and disbursing them quickly and securely according to the terms of the agreement.

What is escrow?

Escrows provide a mechanism to assure safety and convenience in carrying out the provisions of a real estate sale agreement and to assure that the rigid body of rules peculiar to real property transfers is carefully observed. An escrow placed with an escrow officer at an escrow and title company provides:

  • An impartial custodian who holds the funds and documents and makes concurrent delivery of the transfer documents to the buyer and the purchase money to the seller at the moment when the terms and conditions of the transaction have been performed;
  • A “clearinghouse” for the payment of all liens and other encumbrances;
  • A trained broker who performs all details in prorating and adjusting accounts between the parties, and assumes responsibility for the many ministerial tasks involved in the closing.

As an escrow agent, OIH offers:

Escrow Experts

A dedicated team of experienced professionals in Mainland Tanzania and Zanzibar with flexible solutions for a wide range of corporate transactions.

Integrated Solutions

Beyond escrow services, One Investment offers a variety of investments, property consulting, conveyancing, commissioner of oaths, business affairs, ZIPA registration/facilitation, and payment services to support the transaction.

Quick, Reliable and Responsive Service

Agreements, claims, and disbursements are reviewed promptly and comprehensively by the Escrow Services team of professionals and attorneys.

Funds Disbursements

Once the parties are satisfied with the deliverables of a transaction the funds are promptly released to the seller's account or any institution in the world. Funds are reflected in the beneficiary account via swift transfer within two (2) business days from swift instruction are executed.

Integrity and Transparency

All escrow services are supported by legal custodians whose signatures are required to validate the receipt and disbursement of all funds in and out of the account. This procedure is designed to comply with anti-money laundering guidelines of Tanzania and to ensure all agreements and terms are adhered to. We were the first in the history of Tanzania to administer a "revolving escrow" account and until this day no improprieties as a report and it's our mission to continue this path by carefully selecting the clients we choose to represent.

ESCROW FAQ

Why do title companies provide escrow service?

The function of the escrow officer is very closely related to title examination. The buyer will be given an opportunity to review and accept a preliminary title report prior to closing escrow. The buyer's instructions will enumerate the exceptions or encumbrances allowed to remain on the property at closing. To assure compliance with the buyer's instructions, the title company must re-examine the records of the title at the time of closing and, ask the escrow officer to deliver the necessary title insurance policies and documents, and disburse the funds.

When an escrow is placed with the title company, the control of title documents and records is centralized under "one roof." The escrow officer has the complete facilities of the title plant at his/her fingertips.

How does the seller benefit from an escrow?

The seller is assured that the transaction will be properly and promptly closed. Specially trained personnel will see that every detail of the instructions is carefully followed, and that title will not pass to the buyer until the purchase price is fully paid, or the seller's provision as to security for unpaid balances is fulfilled. If the seller intends to use part of the purchase price to satisfy liens on the property, the escrow provides an efficient method for paying off the lienor.

How do others benefit from an escrow?

Real estate brokers, attorneys, and lending institutions, among others, confidently use escrow as a sure method for coordinating many of the details in a real property transaction. The reliability of your title company, as an escrow officer, creates a team with these specialists to effect a smoother, more efficient, and timely closing.

How does the buyer benefit from an escrow?

The buyer is assured that the transaction will be closed in accordance with the buyer's instruction and that the funds will not be paid to the seller until the transaction is properly completed. If the buyer needs to use the property as security for a loan to pay part of the purchase price, the escrow guarantees the lender that the title is exactly as required, and provides a safe method for delivery of loan proceeds or security documents.

OIH Escrow Services only for Real Estate-related Transactions?

No, Escrow Services are available for any party who wish to benefit from the security and transparency of a transaction. It can be used for import and export goods, M&A, documents, tiles, leases, trust deeds

What is the Cost?

The cost is based on the transaction value. Please call or email us for a quotation.

Escrow Services Procedures and Modality

One Investment Escrow Services reduces the risk of fraud by acting as a trusted third party that collects, holds and disburses funds according the buyer/seller agreement.

Here are the FIVE (5) Steps to Escrow Services.

  • 1. Buyer and Seller Agree on Terms
    - Offer to purchase (OTP) is submitted (7-14 days)
        i. Buyer signs offer
        ii. Seller accepts or rejects
        iii. Upon Acceptance buyer has 7 days to deposit ernest money in to the escrow account. (This amounts is normally 10% and non-refundable)
  • 2. Buyer Transfer Funds to Escrow
    - Once the Funds are reflected in the account, Escrow Bank instructs Escrow Agents to prepare instruction letters for reason of funds deposit and names of benefitaries with a copy of the offer to purchase (OTP).
        i. Signatures required by escrow attorney and escrow agents with company stamps
        ii. Bank stamps acceptance of 3 (three) original “Attorney Instruction Letter”. A copy of each is given to Escrow Bank, Escrow Attorney and Escrow Agent.
        iii. Due dilencgence process commensce to ensure the property is clear of all liens and encrumbrances.
        iv. Transfer Attorney instructs property is clear and free.

    - Sale/Compensation Agreement Drafted (7-14 days)
        i. Buyers signs ii. Seller signs
        iii. Transferring Attorney as witness of documents.
        iv. Buyers has 14 Days (unless otherwise stated) to deposit the remaining about of purchase prices into escrow.
  • 3. Buyer Transfer Balance of Funds
    - Escrow Bank instructs Escrow Agents to prepare letters for reason of funds deposit and names of benefitaries.
    - Signatures required by escrow attorney and escrow agents with company stamps
  • 4. Convenyancing Process commence (2-6 months)
    - Land Transfer Board Issues Transfer Certificate (approval of the transfer of real property)
    - Transfer of Share agreement and executed
  • 5. Escrow Release Funds to Seller
    - Escrow Attorney issues the “Funds Release Letter” based on all conditions of the sale/compensation agreement has been met.
        i. Funds Release letter outlines where the funds are to be transferred.
        ii. Minimum four (4) signatures (by Attorney, Agent, Buyer and Seller)
        iii. Bank stamps acceptance of 3 (three) original “Attorney Instruction Letter”. A copy of each is given to Escrow Bank, Escrow Attorney and Escrow Agent
        iv. All payments are processed via Swift or Cash Withdrawal.
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