HOW FINANCING WORKS
(SELLER)
Trust & Escrow
(BUYER)
1. ESCROW FORMATION
3. TITLE IN TRUST
8. TRUST DISSOLVED
2. DOWN PAYMENT
4. DISBURSEMENT
5. POSSESSION
6. MONTHLY PAYMENTS
7. END OF TERM
1. ESCROW FORMATION
The formation of the Escrow account is initiated by the landowner or developer. From here on forward, the landowner, developer and/or Trustee will be known as the 'Seller'. The client purchasing the property will be know as the 'Buyer'.
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The Seller is responsible for the formation of the Escrow account. The Buyer is responsible for all formation fees, all Escrow transfer fees along with the final dissolvement costs.
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Property Direct CR works exclusively with Secure Title Latin America (STLA).
STLA is Latin America's safest and most popular Escrow and Trust service.
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2. DOWN PAYMENT
The Buyer makes the down payment as specified on the listing into the Escrow account. Property Direct CR works with various Sellers with different financing criteria. Each listing will specify the financing terms along with the down payment amount. The completion of this step automatically triggers Step 3.
3. TITLE IN TRUST
The Title is transferred into the Buyer's name or corporation and is place in a Trust Agreement where the Seller is the Trustee. The Title is held in the Trust until the Terms of Financing have been fulfilled. The completion of this step automatically triggers Step 4.​​​​​​
6. MONTHLY PAYMENTS
The Buyer is responsible for the minimum monthly interest payments as defined by the Terms of Financing. All monthly interest payments are made to the Trustee. Any additional or lump sum payments against the remaining principal amount will be sent into the Escrow account and held until the end of each fiscal year upon which the fund will be disbursed to the Seller​.
7. END OF TERM
The Buyer is responsible to make the final balloon payment at the end of term as defined in the Terms of Financing. This payment is made into the Escrow account and is held until all Terms of Financing have been satisfied. The completion of this step automatically triggers Step 8.​​
8. TRUST DISSOLVED
​Once the Terms of Financing have been fulfilled, the Trustee will release the Title being held to the Buyer. Upon which the Buyer approves the disbursement of the funds held in Escrow to the Seller.
The Trust Agreement is then dissolved and both parties go their separate ways as all legal obligations have been met.​