The escrow account is a blocked bank account held with a neutral and financially trusted third party. This trusted third party, the escrow agent, shall distribute the funds paid into the blocked bank account on the basis of an escrow agreement between the buyer, the seller and the escrow agent. The escrow agent provides a tailored escrow agreement and opens a dedicated escrow account. The buyer transfers the funds and/or documents while waiting for the seller to deliver. The escrow agent releases the funds and/or documents from the escrow account after the release conditions, as specified in the escrow agreement, have been met.
The Process:
- Buyer, seller and escrow agent sign the escrow agreement
- Buyer deposits money and/or documents in escrow
- The escrow agent manages the escrow account
- The escrow agent confirms to the seller that the funds and/or documents have been received in the escrow account
- Seller performs the required services
- Buyer accepts delivery and proof of acceptance is sent to the escrow agent
- The escrow agent releases the money and/or documents to the specified beneficiary
The Advantages
- It is easy to set-up an escrow agreement with tailor-made release conditions
- The seller is sure that the buyer has transferred the funds and/or documents into the escrow account
- The buyer can be sure that the funds and/or documents will only be released as agreed and specified in the escrow agreement
- The Escrow & Settlement team of ABN AMRO can arrange escrows in Europe within 48 hours of receiving the necessary information
- The Escrow & Settlement team operates from London and Rotterdam and is a dedicated branch of ABN AMRO
If you are interested in our Escrow & Settlement services, please call us.