In the UK you can buy "off plan", but you only pay a deposit, and that goes into escrow until you get the keys, the developer can't touch the money until then
Not quite. In india properties get loans during early construction as well, and the amounts are disbursed in tranches based on completion progress. Timelines must be filed publicly with RERA and a non RERA approved property is a red flag. No escrows as such for loans taken by buyer.
What I call loan is a similar arrangement to mortgage. Buyer pledges property as collateral, pays about 20% out of pocket, rest is a debt to be paid. Defaults result in loss of ownership of property. The agreements are tripartite. Builder gets paid from the loan taken out by buyer in tranches and builder reputation matters along with market value assessment and buyer's credit profile for obtaining a loan.
What I call loan is a similar arrangement to mortgage. Buyer pledges property as collateral, pays about 20% out of pocket, rest is a debt to be paid. Defaults result in loss of ownership of property. The agreements are tripartite. Builder gets paid from the loan taken out by buyer in tranches and builder reputation matters along with market value assessment and buyer's credit profile for obtaining a loan.