Once you have received confirmation from your chosen escrow service provider that they have completed their due diligence checks and your account has been set up successfully, the next step will be for them to draft the escrow agreement. The agreement will be held between all parties to the transaction and will include the escrow service provider. The escrow agreement is a legal document that will govern what services will be provided, how the escrow service provider will handle the funds / property for the transaction and set out the terms of the transaction to be agreed by all parties.
The escrow agreement will set out the terms under which the escrow service provider will accept, hold and release the funds / property for your transaction. Typically, the escrow agreement will include details regarding:
- How and when they will accept information
- Bank details and banking hours and
- The agreed services to be provided by the escrow service provider
The Agreement will also include the ‘Release Conditions’ which will be specific to your transaction, and will reflect the trigger events, previously agreed between the parties, that will prompt the escrow provider to release the funds / property being held.
Some escrow providers will be able to supply standard template agreements that will only need to alter the details of the relevant parties to the transaction. These are most commonly used by escrow service providers that handle small transactions and are normally based on similar transaction types – such as lower value goods transactions. Other escrow service providers will be able to offer bespoke escrow agreements that are drafted to reflect individual transactional needs, and will offer each party the option to review and suggest edits to the agreement before moving forward with the transaction. In some more complex cases, where there are multiple transactions being made, the escrow service provider may be able to provide multiple escrow agreements that work alongside each other.
For more information about how our escrow agreements work, and how we can assist with your transaction, you can contact our team via our website.
Riverside Escrow is a UK based FCA authorised escrow company helping businesses and individuals exchange assets and funds.
We were first set up in 2014 and we offer high quality and cost effective Escrow Services in a board range of transactions. Our dedicated team of staff strives to provide efficient and clear services, tailored to fit each individual transaction.
Riverside Escrow Limited is authorised by the Financial Conduct Authority as a Payment Institution under the Payment Services Regulations 2017 with registration number 920922 for the provision of payment services.
Riverside Escrow Limited is authorised by the Financial Conduct Authority under the Payment Services Regulations 2017 with registration number 920922 for the provision of payment services.
Please note that our authorisation with the Financial Conduct Authority (“FCA”) applies only in relation to payment services transactions (principally transactions involving the holding and payment of funds), it does not relate to any other form of escrow service offered by us – for example where we hold real property.
This means that the Financial Conduct Authority does not regulate us in respect of any escrow transactions other than payment services transactions.
As a result:
- we are not required to comply with the FCA rules in respect of services other than payment services;
- the FCA does not regulate us in respect of any escrow services other than payment services;
- payment services are the only type of service offered by us that users of our services are able to complain to the FCA about; and
- payment services are the only type of service offered by us that users of our services are able to complain to the Financial Ombudsman Services about.