How you go about instructing your escrow service provider to release the funds / property they are holding for your transaction will depend on what was previously agreed between the parties to the transaction, and what trigger events / release conditions were included in the escrow agreement.

You should be aware of what action you need to take to release the funds / property from the escrow service provider before signing the escrow agreement and before the funds / property is deposited with them. In most cases evidence that both parties, or the relevant party representatives, are in agreement that the funds / property can be released from escrow to the receiving party. This may take the form of a payment instruction letter signed by all parties, it could be receipt of an invoice for services, or a delivery notice signed by the receiver. What documentation is needed will depend on the type of transaction and what is agreed between the parties.

In complex transactions the release conditions / triggers are often bespoke and drafted to reflect the individual needs of each transaction. However, smaller or more simple transactions may have standard release conditions / trigger events included in template agreements. As an example, a transaction as part of a company sale would most often require bespoke release conditions to be drafted, to work alongside the other legal documents required as part of the sale. For a transaction where an individual is placing funds into escrow as security for expenses, as part of a party wall award, you would most likely be able to rely on standard release conditions included in a template agreement, as it is common for the trigger to be based on sign off from surveyors.

It is worth noting that, if at the time of release of funds a dispute arises between the parties, the escrow service provider will not have a responsibility to assist in settling the dispute – they are simply responsible for holding the funds / property until the dispute has been settled and the release condition / trigger is met.

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.