Escrow (履約保證, often shortened to 履保) is the price-custody mechanism used in Taiwanese property sales. Every payment the buyer makes goes into an escrow account opened by a bank or a building management company (建築經理公司), never to the seller. The money is released only after the title has transferred and both sides have completed handover. It protects both parties: the buyer cannot pay and then fail to get title, and the seller cannot transfer title and then fail to get paid.
The cost is small: about 0.06% of the sale price, split equally, so on a NT$15,000,000 home each side pays NT$4,500. What should worry you is skipping it: money wired straight to the seller and the home seized by creditors before transfer, or the seller transferring first and the buyer’s loan falling through. These cases happen every year. If a seller says escrow is too much trouble and asks for a direct transfer, remember that NT$4,500 buys the safety of a deal worth tens of millions.
Three numbers
- 0.06% of the sale price.
- Half each: buyer and seller split the fee.
- Two-way protection: the buyer’s money and the seller’s title.
(Common market rate; the actual rate follows the bank’s or building management company’s tariff. Data as of July 2026.)
What escrow is, in one sentence
Your money sits in a third-party safe, and the seller does not hold the key. The signing payment, sealing payment and final balance are the same instalments as in the ordinary buying process; the only difference is whose hands the money passes through. With escrow, the land administration agent (代書, the licensed professional who handles title transfer) and the bank watch the sequence. Without it, every transfer is a bet on the other side’s honesty.
| With escrow | Paid directly to seller | |
|---|---|---|
| Signing payment | Into the escrow account; neither party can touch it | Seller can spend it; hard to recover if things go wrong |
| Transfer and payoff | Account pays off the old mortgage first, then releases the balance | Sequence depends on trust; easily deadlocks |
| Cost | About 0.06% of price, split equally | Saves a few thousand on paper; unlimited risk |
Our view: Any deal that asks you to wire the price directly to the seller, whatever the reason, is one to walk away from. NT$4,500 buys the safety of a transaction worth tens of millions. It is not negotiable and not something to save on.
Is this the same as escrow in the United States?
Broadly, yes. Taiwan’s version is run in practice by a building management company with a bank trust account, and the core is identical: third-party custody, release on conditions. The scope differs. US escrow often also handles property tax and insurance instalments; Taiwan’s covers only the price and the title transfer, and the fee is far lower, about 0.06%.
The fee formula
Escrow fee = sale price × 0.06%, split equally between buyer and seller, normally paid at signing. On NT$15,000,000: NT$9,000 in total, NT$4,500 each. The 0.06% figure is the common market rate; the actual rate follows the provider’s tariff. The interactive calculator is on our Chinese page (link). To see it alongside contract tax, commission and the down payment, read buying and selling costs.
How the money moves: four steps
Escrow follows the sale contract, usually 4 to 6 weeks, in step with signing, sealing, tax, transfer and handover.
- Sign and open. The escrow account is opened when the sale contract is signed. The signing payment (about 10% of the price) goes in, never through the seller.
- Instalments in. The sealing payment, the tax payment and the bank’s loan disbursement all go into the account. Neither side can touch them.
- Transfer and payoff. The land administration agent registers the ownership transfer; the account pays off the seller’s old mortgage and discharges it; the title is confirmed clean.
- Release and close. Everything checked, the balance goes to the seller and the promissory notes (本票) are returned and torn up.
Before we take you to a viewing, we confirm the seller will use escrow. If they will not, we recommend skipping the property.
How to confirm your money really went into the account
The account is opened for this one transaction. Its name usually contains 受託信託財產專戶 (trust property account) or 履約保證專戶 (escrow account), paired with a virtual account number unique to the case. The escrow certificate you receive after signing states the certificate number, account name and account number. Check all three, character by character, before every transfer.
Three checks. First, the account name must be a bank or building management company, never the personal account of the seller, the agent or the land administration agent; if anyone says “wire it to me first and I will move it into the account”, refuse. Second, after each transfer, use the certificate number to confirm receipt with the provider; most offer an online lookup or a service line. Third, all four instalments go through the same account; no cash on the side because an amount is small. The seller can and should query the account too.
Escrow, price trust and promissory notes: three different tools
| Tool | What it does | Who oversees it |
|---|---|---|
| Escrow / price trust (價金信託) | Instalments go into the account and are released when conditions are met | Bank or building management company |
| Signing-payment promissory note | If the buyer defaults, the seller can claim a set amount | Negotiable Instruments Act; held by the agent |
| Balance promissory note | Ensures the buyer can pay the balance after transfer; returned and destroyed when done | Agent and seller |
Do you still need promissory notes with escrow? Yes. Escrow governs when the money moves; the notes govern what a default costs. For sellers, escrow is not an obstacle: it guarantees you receive the balance after transfer, and a sequenced payoff of your old loan from the account is far more reliable than a buyer’s promise.
What happens without it
Three situations seen in practice. One: the buyer wires the signing payment straight to the seller, and the home is seized by a creditor before transfer; the money is gone and the only route is a long lawsuit. Two: the seller transfers first, then the buyer’s loan is refused; the title belongs to someone else and the balance never comes. Three: one side backs out mid-deal and the money already paid is stuck with the other side. Escrow blocks all three, because money and title change hands at the same time.
Practical notes. If the property was inherited, inheritance registration and estate tax must be settled before signing and transfer, and the escrow account waits for that. Pre-sale and finished homes use the same escrow checkpoints; only the instalment ratios and handover timing differ. Who pays? Half each, written into the contract. If the other side demands you pay all of it or refuses escrow, that is a warning; change property rather than bet on good faith. Providers are mostly state-owned banks or building management companies; the land administration agent explains the account name and remittance memo at signing. Verify before wiring, keep every remittance slip, and reconcile at handover.
Our view: Escrow has nothing to do with lending limits. Whatever ratio you can borrow, price safety comes first. Confirming the escrow provider before signing matters a hundred times more than haggling NT$500 off the fee.
FAQ
How much is escrow and who pays?
About 0.06% of the sale price, split equally. On NT$15,000,000 that is NT$9,000 in total, NT$4,500 each.
Is escrow compulsory? Can I skip it?
Always use it. It is the smallest cost and the largest protection in the whole deal; skipping it leaves tens of millions unprotected. Any properly run agency sale uses it.
Will the seller have trouble getting paid from the account?
No. The account is controlled by the bank or building management company and pays the seller once transfer is complete and title confirmed. Escrow protects both sides.
Is escrow the same as a price trust?
Same idea: a third party holds the money and releases it when conditions are met. Market names vary (price trust, escrow and others); at signing the land administration agent explains which scheme and provider this deal uses.
Can a private sale without an agent use escrow?
Yes, and it needs it more. Apply through a land administration agent to a bank or building management company; our in-house agents handle escrow for sales between family and friends as well.
Does escrow affect the order of mortgage disbursement?
Yes. The bank’s loan goes into the account, the seller’s old loan is paid off and discharged, the title is confirmed clean, and only then is the balance released. Leave this sequence to the land administration agent.
Does escrow only protect the buyer?
No, that is the most common misunderstanding. For the buyer, the money is locked until transfer, so the seller cannot run off with it. For the seller, the signing payment and balance are actually in the account, so payment after transfer is guaranteed. It protects the transaction, not one side.
A few thousand dollars for a safe transaction
Before signing, confirm three things: the money goes through an escrow account, a land administration agent reviews the contract at the table, and the promissory notes and disbursement order are written down. See the buying hub or contact us.