What is Escrow?

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Please complete the form below and we will make sure your query goes to the right person to respond to you as quickly as possible.

The information you submit will be handled in accordance with our privacy policy.

What is Escrow?

Escrow is the term used when a contractual arrangement between two or more parties is put in place, in which an Escrow Company will hold funds or property during a transaction, acting as an independent third party.

When providing Escrow Services the Escrow Company acts as a third party to the transaction by holding the funds or property until pre-agreed conditions have been met. Once the conditions are met the Escrow Service provider will release the funds/ property held. 

Escrow Services can be used in almost any situation where money or property is being transferred between parties. 

Take a look at Our Svervices to find out more.

What is it used for?

Escrow can be used in relation to virtually any matter involving the transfer of money or property.

Examples include:

  • Corporate financing and the raising of capital
  • Corporate transactions including mergers, acquisitions and sales
  • Charity and fundraising events
  • Loans where release of the loan money is conditional on a future event or is to be paid in instalments
  • Real estate and other property related transactions
  • Sales of high value property at a distance (eg cars, antiques and wine)
  • The holding of settlement funds following disputes

Please see our escrow services, for the types of service and sectors we work with.

What are the benefits of using Escrow?

Escrow Services are commonly used to provide certainty to all parties involved in a transaction regarding flow of funds. 

When using an Escrow Service, both parties will agree on set conditions that must be met before the Escrow Service provider releases any funds held in the Escrow Account. 

How does Escrow work – our 5 step guide

Riverside Escrow will act as an independent party in an agreement. This means that Riverside Escrow holds and regulates the funds of the transaction until the conditions set out in the escrow agreement have been met. 


A buyer and seller make an agreement

Agree terms

Party A and Party B agree to terms - Riverside Escrow will draft an escrow agreement tailored to the clients needs. This agreement will contain specific release of funds conditions.



The buyer pays Riverside Escrow

Payment to escrow

Party A - submits a payment by approved payment method to our Escrow Account, Riverside Escrow verifies the payment and notifies the parties that funds have been deposited.



The seller sends the goods to the buyer

Contract performed

Party B provides the goods or services to party A.



The buyer accepts goods as per agreement

Contract complete

Party A receives the goods or services and proof of contract and completing is provided.



Escrow releases funds to seller

Funds released

Riverside Escrow releases funds to Party B from the Escrow Account.


The process

1. Agree Terms

Party A is buying a Boat, Party B is the Seller. Party A and Party B agree to use Riverside Escrow as an independent third party to hold the funds for the purchase. Once the KYC/ AML checks have been completed, Riverside Escrow will draft an Escrow Agreement. 

The Escrow Agreement is tailored to the client’s needs, and contains conditions that must be met before the release of funds. These conditions are agreed by both Party A and Party B.  The condition for this purchase is the delivery of the boat in good condition and in 6 months of the Escrow Agreement being dated. 

2. Payment to Escrow

Once the Escrow Agreement has been signed by both parties. Party A will then be asked to pay the Escrow amount into our escrow bank account. Riverside Escrow will then verify the payment and notify both parties that the funds have been received into the escrow account.  This is often referred to as putting money in escrow

3. Contract performed

Party B will arrange transport of the boat. As per the Escrow Agreement, Party B will provide proof that the Boat has been collected by the transport company. 

4. Contract Complete

Party A receives the Boat in the expected condition and it has arrived before the 6 month cut-off date. Party A notifies Riverside Escrow of this, providing the documents detailed in the Escrow Agreement.   

5. Funds Released

Once Riverside Escrow has confirmed that all the relevant conditions have been met, as set out in the Escrow Agreement, we will then release the money in escrow, paying out the money held in the escrow bank account to Party B, as set out in the Escrow Agreement.

About us

When using an Escrow Service provider, we understand that it’s important to make sure you trust the Escrow Company you’ve chosen. At Riverside Escrow we have taken multiple steps to provide peace of mind for all our customers.

How are we Regulated?

Riverside Escrow is reigistered in England & Wales with company number 05474890.  Riverside Escrow Limited is authorised by the Financial Conduct Authority under the Payment Service Regulations 2017 with registration number 920922 for the provision of payment services. You can find our information by searching for us on the FCA register here, which lists all our contact information. If you’re ever in doubt that correspondence has come from us, you can call the number listed on the FCA website to ensure you’re through to the right people. 

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.

Other Regulators / Other Registrations

HM Revenue & Customs: Riverside is registered with HM Revenue & Customs as a ‘money transmitter’ under the Money Laundering Regulations 2007 with registration number 12784619.

Information Commissioner’s Office: Riverside Escrow Limited is registered as a data controller with the Information Commissioner’s Office with registration number ZA132453. You can check the register of data controllers here: https://ico.org.uk/esdwebpages/search


Where are my Funds kept? 

Riverside Escrow bank with one of the UK’s leading banks. We have declared a trust over our dedicated client escrow bank account. The fact we operate a client account means that client funds are segregated from our own funds, and the trust adds additional peace of mind. Your money held by Riverside Escrow would be safe even if Riverside Escrow were to become insolvent, as the insolvency practitioners could not distribute client money to pay for debts of the business, as the trust segregates them.     


What identity checks do we carry out?

When setting up an escrow account we carry out ‘Know your Client’ (KYC) checks / Anti-Money Laundering (AML) checks on all parties involved in the escrow transaction. This is a requirement of our regulator, the FCA.  

We will require Photographic Identification and proof of address, and may also ask for information regarding the source of funds being used for the transaction and source of wealth, from each of the involved individuals. Identity will also be verified whether in person or via Skype/facetime. It may be that one or more of the parties are Companies, in which case we will ask for KYC documents from one or more of the directors and shareholders.

If you would like more information on our KYC / AML process please don’t hesitate to contact us. 

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