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Escrow payment and how escrow works

Counsel
February 22, 2019 | Corporate law

Escrow payment and how escrow works

Escrow Payments facilitate transactions, while also safeguarding the interests of the parties involved in the transaction. To facilitate this process, Goldblum and Partners, offer the most reliable platform for exchange of monies and documents, through its escrow services. By this, we undertake to make transfer or payment on behalf of the depositor, in accordance with the terms stipulated under the Escrow Agreement.

Our Escrow payments ensure that the parties to an agreement, upon availing our escrow services, are provided with comprehensive end-to-end support. As your escrow agent, we release the escrow payment only after the Grantee or the Beneficiary fulfils his obligations, as agreed upon under the Escrow Agreement. This ensures a hassle-free experience for all the parties involved in the transaction.

The core benefits of our escrow system are ease, convenience and confidentiality. As Attorneys with enormous expertise in the field of law, we make the entire process easy and convenient. Also, since you stand to benefit from the Attorney-Client, privilege, you are assured of absolute confidentiality. With this, Goldblum and Partners offer you all the security and ease of transacting with unknown parties. We provide both financial and documentary Escrow services, to enable swift and convenient business transactions, worldwide.

How Escrow Works

Escrow is a contractual system that cascades the risk involved in the fulfilment of future obligations, with respect to a transaction. Derived from the French word 'escroe' which means a 'scroll', which can be better interpreted as a record. In the olden days, it meant a deed or a bond, which held money or property, for the benefit of another.

In the modern day, Escrow is an arrangement, according to which, the party liable to pay consideration at a future date, deposits the same with a third party like us, which is involved in the business of providing escrow services. Here, the third party undertakes to pay the consideration to the Beneficiary, upon the instructions of the Depositor, and on behalf of the Depositor.

An Escrow Account is therefore a form of trust, formed by the parties involved in a transaction, and an account in which escrow funds are held, until the completion of the transaction. This arrangement facilitates the entire process and helps minimize risks. This is largely implemented in cases of real-estate transactions, businesses involving import and export, and online businesses. This arrangement helps overcome the risks involved with regards to the fulfilment of future contractual obligations. Let us now discuss some of the important aspects connected with this system.
How Escrow Works

Duration of Escrow Services

The precise duration required to complete the escrow payment depends on a lot of factors such as terms agreed upon, between the parties and the nature of contractual obligations that the parties must fulfil. Also, after fulfilment of obligation by one party, the other party has the right to inspect the deliverables, and this period is known as inspection period, which is specifically laid down in the Escrow Agreement. So the duration of escrow services is generally a sum of the period of transaction plus the inspection period.

Although, this may seem intimidating and complex, Goldblum and Partners help you break it down. So, when you work with a reputable law firm like ours, we help expedite the process. We make this possible with our strong expertise in the legal field, and our 24x7 legal support.

Our Attorneys are driven by the passion to enable businesses expand their horizon, through our unwavering support and expertise.
Duration of Escrow Services

What are Escrow Payments

Escrow payments ensure that there is a third party intervention to regulate the effective and timely completion of the contract, between the parties. With over a decade of experience in providing escrow services, our dedicated financial attorneys can effectively guide you throughout the process.

The escrow payment is a two-step process, which commences with the escrow payment being made in favour of an escrow account held by us. The escrow account is subsequently closed, once the transaction is complete, whether successfully or otherwise. In case of a successful transaction, the escrow payments are released in favour of the Beneficiary after the completion of the inspection period. Else, if the Beneficiary fails to fulfil his contractual obligations, as stipulated under the escrow agreement, the Depositor reserves the right to withdraw the escrow funds.

Our Experts can provide you with a standard Escrow Agreement template that we would work around. We then seek your inputs and draft the escrow agreement, accordingly. With constant communication, our Attorneys would discuss your requirements and make necessary suggestions from time to time. If need be, we will revise the agreement, but only after consulting you. As your Attorney and escrow services provider, all our efforts would be directed towards protecting your best interests. Also, you stand to benefit from the Attorney-Client privilege accorded to us. This ensures complete confidentiality, which we understand, is extremely important for your business.

Our Promise
We provide expert advice on all legal matters connected to escrow payments and escrow services. Besides, in case things go wrong, and the legal advice does not work out, our clients are covered under insurance worth 1 million francs. Further, by partnering up with Goldblum and Partners, you are associating yourself with a well-established firm, which has vast experience in catering to the needs of small, medium and large-scale businesses. From Goldblum and Partners, you can expect strong expertise in the legal field, professionals with rich experience, and highly responsive professionals.