Statutory Earnest Money ("العربون") & Escrow Trust Lifecycle

Statutory Earnest Money ("العربون") & Escrow Trust Lifecycle A lifecycle diagram generated by Archify. 01 / Conveyance milestones 02 / Regulatory & escrow holds 03 / Settlement & default remedies Offer Accepted · MoCI terms agreed · Conveyance milestones · MoCI 164/2020 01 Offer Accepted MoCI terms agreed MoCI 164/2020 Escrow Funded · 10% certified cheque · Conveyance milestones · AK-ARB- Voucher 02 Escrow Funded 10% certified cheque AK-ARB- Voucher 4-Point Clearance · cadastre & Baladia · Conveyance milestones · Due Diligence 03 4-Point Clearance cadastre & Baladia Due Diligence MoJ Conveyance · notary appointment · Conveyance milestones · Registration 04 MoJ Conveyance notary appointment Registration Deal Settled · title deed issued · Conveyance milestones · Title Conveyed 05 Deal Settled title deed issued Title Conveyed Baladia Hold · zoning / setback check · Regulatory & escrow holds · Law 33/2016 Baladia Hold zoning / setback check Law 33/2016 Mortgage Payoff · lender debt clearance · Regulatory & escrow holds · Bank Discharge Mortgage Payoff lender debt clearance Bank Discharge Disbursal Hold · proceeds distribution · Regulatory & escrow holds · Trust Ledger Disbursal Hold proceeds distribution Trust Ledger Harmless Refund · 100% returned to buyer · Settlement & default remedies · Title Defect Harmless Refund 100% returned to buyer Title Defect Default Remedy · forfeiture / 2x penalty · Settlement & default remedies · Articles 74/75 Default Remedy forfeiture / 2x penalty Articles 74/75 Settlement Sealed · escrow closed & archived · Settlement & default remedies · Archived Settlement Sealed escrow closed & archived Archived Legend start active state waiting decision terminal success failure / exit

Statutory Conveyancing Path

  • • 10% certified cashier cheque voucher (AK-ARB-) held in dedicated escrow trust
  • • 4-point statutory clearance: PACI cadastre, Baladia building license, clean title deed, civil status
  • • Final settlement applies escrow funds toward agreed purchase price upon MoJ conveyance

Kuwait Commercial Code Rules

  • • Article 74: Buyer unjustified default forfeits 100% of earnest deposit to the seller
  • • Article 75: Seller default mandates full refund plus equal penalty (2x total deposit paid to buyer)
  • • Defective legal title or unresolvable Baladia violation triggers 100% harmless return to buyer
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