Grenada appointing escrow agents for strict oversight of approved real estate projects

The Government of Grenada (CBI Unit) has issued a tender for appointing escrow agents for strict monitoring and oversight of approved real estate projects under the citizenship by investment regulations.

The Grenada Citizenship by Investment (Approved Projects) Regulations, 2017 which govern the CBI approved projects make provision for the setting up of a project escrow account by a developer with a licensed financial institution in Grenada and the signing of an escrow agreement between the developer of an approved project and the Committee. The regulations also mandate strict monitoring and oversight of approved projects by the Committee.

To assist in the strict monitoring and oversight of approved projects, the escrow agreement makes provision for the management of escrow accounts by escrow agents who shall facilitate the draw-down of funds from the escrow account in keeping with stipulations and criteria set out in the agreement.

The role and responsibility of escrow agents’ will be the following:

•  Opening a separate escrow account for each escrow agreement in the name of the escrow agent
•  Keeping all escrow funds for each approved project separate from any other funds or accounts held by the escrow agent
•  Transferring monies and interests in the escrow account to the party entitled in accordance with the terms of the escrow agreement
• Issuing evidence of all transactions, including evidence of monies being deposited or other transactions of the party conducting the transaction and notifying the other party and the Committee in writing.
• Only disbursing sums from the escrow account following a signed withdrawal notice from the Committee and in accordance with the escrow agreement
• Giving written reports regarding all monetary transactions and the balance on the escrow account to both developer and the Committee.
• Closing the escrow account and notifying the parties. When the terms of the escrow agreement have been fulfilled and monies have been transferred from the escrow account; or . If the agreement is terminated

The selected escrow agents shall be placed on the Committee’s Roster of Escrow Agents. The Developer of an approved project and the Committee will jointly select an escrow agent from the Roster to enter into an escrow agreement for the management of the escrow account of the developer’s approved project.

Banks, attorneys and chartered accountants can apply to provide the services of escrow agent. The Last date for the Escrow agent proposals must be received at the Citizenship by Investment Unit by August 14, 2020.

More information is available here