Escrow services are more than being a third party to a transaction, and an escrow account is more than an intermediary facility. An escrow account is a finely tuned tool, that facilitates both buyer and seller security when conducting both large and small transactions. The main purpose of an escrow account is to ensure that both parties involved in a transaction fulfill their contractual obligations to the other, and acts as a safeguard and protection for trades. An escrow service provider like Transfer Co. is there to act as an independent third party, and ensure that both parties do meet their mutual engagements, by utilizing our services you can be sure that your transaction will be conducted in a safe and legal environment, and all local and international escrow laws followed to the letter.
When using an escrow account provided by an escrow agent, your designated account can be used for a larger number of agreements, be it real estate, or other asset transfers/sales including trade deals, sales or purchases of enterprises, as well as the transfer of shares, and securities. When using an escrow account, your funds or assets are placed in a state of conditional deposition, which in simple terms means that the account where either parties funds are held, are kept securely held until the receiving party meets the pre-determined conditions that have been outlined in your contract with them and vice versa.
Transfer Co. specializes many types of escrow services. Outlined below are some of the most common escrow services rendered, given the time taken and risk when conducting this business on your own.
Contractual Escrow services.
Contractual escrow services, or Contract escrow is mainly used in the real estate business, or in the acquisitions of companies. The deeds/titles of the asset(s) that are for sale are held in a designated escrow account, until both parties are satisfied that the terms of the contract, and all obligations have been met. When selling assets and using services like these, the seller can if they so wish decide on the contractual payment plan. In certain cases Contract payments can, be deposited to the escrow agency, at which point, the escrow agent would notify both parties and release the funds to the seller, once all accurate payment records that are related to the transaction have been accounted for. In the case of a default of payment, the escrow agent will notify both parties and attempt to resolve the matter in a timely and orderly fashion as outlined in the escrow agreement between both parties.
Escrow Retainage Services
Escrow retainage services are most commonly used between for contract commissions. Funds for the project are required to be held in escrow as retainage, between the contractor party, and the owner, and are held in a designated money market fund for safeguarding. When the project is completed to the satisfaction of both parties, and both parties agree that the work has been carried out subject to the terms in the contract, the owner will then authorize the escrow agent to release the retainage funds, as well as any and all accrued interest of the investment of the monies to the contractors designated account, as outlined in the escrow agreement between both parties.
Transfer Co. also provides a large number of other escrow services inlcuding:
• Mergers & Acquisitions
• Earn-out provisions
• Golden handcuff provisions
• Good faith deposit provisions
• Holdback provisions
• Indemnification provisions
• Purchase price distributions
• Purchase price adjustments
• Domain name escrows
• Environmental escrows
• Litigation settlement escrows
• Reinsurance trust escrows
• Reorganization & liquidation escrows
• Safekeeping of intellectual property
• Private placement stock offerings
For more information relating to the specific escrow service you require, please contact one of our representatives today, and they will be happy to give you a free consultation.