How does a typical escrow process work?
Working with the property developer and the funder, we set out an escrow agreement. This carries the security of a guaranteed payment and is designed to protect everyone involved.
We hold the funder’s money in an independent account, protecting both them and the developer.
As each pre-agreed condition is reached, we receive the required drawdown notice to release the funds.
Once the final conditions of the agreement are met, the remaining funds are released, bringing the agreement to an end.
Highlights of our escrow services
- We carry out robust due diligence
- We establish our own formal escrow agreement
- We only use highly rated banks
- We can open bank accounts in all major currencies
- We offer specialist escrow services for pension schemes (prevents excess employer contributions from becoming locked into in an overfunded pension scheme)
Dedicated escrow services for pension schemes
Our escrow services can help to protect employer contributions and provide security to scheme members that their full benefits will be paid to them. When a pension scheme reaches its minimum funding level, an escrow account can stop excess employer contributions from becoming trapped in an overfunded pension arrangement.
As escrow agents, we can hold those surplus assets on behalf of both the sponsoring employer and the scheme. And if those assets are no longer needed, we release them to the scheme or return them to the sponsoring employer.