Square Yards ties up with banks to provide digital escrow service in property deals

We want to target this market opportunity and tap the huge latent demand for escrow in the real estate sector, said Shori.Square Yards is mainly into property brokerage as well as brokerage of home loans.In September 2019, Square Yards had raised USD 20 million through preferential issue of equity shares to investors including Times Group.

Real estate technology platform Square Yards has partnered with banks and SEBI-registered trustees to provide digital escrow service to property buyers, sellers and brokers.

The digital escrow service will facilitate secure financial transactions between homebuyers, sellers, and agents.

Homebuyers/tenants can now make security payments and rental deposits completely online in digital escrow accounts, the company said in a statement.

Square Yards has partnered with top banks and SEBI-registered trustees to ensure complete safety and transparency of the escrow accounts for clients.

Transacting parties can open the escrow account digitally, through e-KYC, digital stamping, and e-signature procedures, using a fluidic digital escrow panel.

''Real estate transactions, especially in the secondary market are still executed through unregulated structures that are characterised by a lack of trust, fragmented documentation process, and zero accountability,'' said Tanuj Shori, Founder and CEO, Square Yards.

This, in turn, increases the risk of deal fallouts, failed transactions, and fraudulent activities, he added.

''In India, the resale market witnesses about 13 lakh transactions annually with a total property value of Rs 5.5 lakh crore. We want to target this market opportunity and tap the huge latent demand for escrow in the real estate sector,” said Shori.

Square Yards is mainly into property brokerage as well as brokerage of home loans.

In September 2019, Square Yards had raised USD 20 million through preferential issue of equity shares to investors including Times Group. Anil Ambani-led Reliance group's private equity arm had invested USD 12 million in Square Yards in November 2016.