Once you have an escrow agreement in place, and signed by all parties, the next step will be to deposit the funds / real property with the escrow service provider. If it is real property (e.g. antiques or source code on memory stick) that will be held by the escrow service provider, they will have previously agreed with the parties a location for the property to be kept, and upon signing the escrow agreement the escrow service provider will request the property to be transferred to this location.
When funds are to be placed into escrow, the escrow service provider will make the request for the funds to be deposited upon signing the escrow agreement. The escrow service provider will supply the party depositing the funds with the relevant account information to make the payment. It is common for escrow service providers to hold the funds in a dedicated client account that is held in the escrow service provider’s name, much like a solicitor would. The client account can be “ring-fenced”, meaning that the Bank acknowledges that the funds held within the account do not belong to the escrow service provider. It also means that the funds can not be used for the needs of the business, for example if the escrow service provider were to become insolvent, the funds held in the client account could only be returned to the person who deposited them.
Once the funds have been deposited the escrow service provider will typically use accounting software to allocate the funds to the project. They will then confirm to all relevant parties that the funds have been received.
Our team would be happy to talk through how escrow services can be applied to your transactional projects. To find out more, contact us via our website or leave a comment below.
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.