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What does it mean if my property is "in escrow"?
What does it mean if my property is "in escrow"?
Updated over a week ago

When your property is in escrow, the community's invested funds are securely held until the full funding target is met.

Upon selecting their desired investment, users can specify the amount they wish to invest and finalize the purchase by digitally signing the agreement. Once the purchase is complete, the investment is marked as "in escrow" within the user's portfolio.

This status remains until the accumulated investments for the chosen opportunity reach the predefined soft cap, which is the minimum investment threshold for a property listing to be considered successful. Each listing has a predetermined 'listing period, which is the timeframe during which users can invest. The escrow account securely holds the funds during this period, in some cases the escrow period can be lengthened, depending on the underlying contract.

When the collective investments attain the established soft cap of a property, a series of automated actions governed are triggered. Notes, representing the underlying property, are transferred to the users wallets in accordance with the amount invested.

Simultaneously, the funds are now transferred to the offering stakeholders, the listing entity effectively exchanging funds for securities and concluding the transaction.

Along with the soft cap, a hard cap for the property is also defined. The hard cap represents the maximum investment amount that can be contributed by all investors. Once the threshold of the hard cap is achieved, the platform will automatically halt any additional investments.

In the duration of these processes, multiple checks and due diligence are conducted to ensure regulatory compliance and investor protection.

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