Escrow exists in Mexico to allow the Buyer confidence that they are putting money into a US account where money can only be disbursed from the account according to the Escrow instructions that the Buyer signed when they signed their purchase contract. On a resale transaction, Escrow is very helpful because the buyer does not have to give funds directly to the Real Estate Agent, the Real Estate Broker or the Seller. Instead, they would agree to the terms of the Escrow Instructions and deposit their money with the neutral third party, the Escrow. As the terms of the instructions are met, the Escrow Officer will disburse the funds to the appropriate parties.
In the case where the seller is the developer, the escrow can be tied to something called a Fund Control. This allows the buyer to know that their money is only being disbursed as the development is moving forward according to specific instructions. If the developer does not accomplish a construction milestone, then the Escrow Officer will not release the funds. The Fund Control is often handled by a third party company with engineers that certify that each milestone has been reached. First Title Services offers this service to all of the developers that they work with.