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.
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.