Escrow Services

Escrow Agency & Escrow Account Services
Due to the excellent reputation and trust our law firm enjoys in the market, we undertake escrow services either directly or through a licensed and regulated 100% subsidiary company of our law firm, The Golden Trust House Co. Ltd.

1. Meaning of "escrow":

The escrow agent keeps a sum of money and/or documents in custody until pre-determined condition/s is/are met.

2. Where escrow may be used:

  • As a guarantee for entering into any form of agreement.
  • To exercise share option agreements.
  • Transfer whole or part of ownership.
  • Any other case upon request.
  • As a performance guarantee.
  • Acquisitions.

3. Reason for using escrow accounts:

  • The buyer is confident and sure (guaranteed and assured?) that the documents and/or funds can be released according to the escrow agreement.
  • The seller is assured that the buyer has the money to buy and this money is available in an account of a reliable and trusted third party.
  • Quick and easy way to set-up a customized agreement with the agreed release conditions.

4. Why us for escrow:

  • Flexible approach and client focused.
  • Trusted third party.
  • Expertise.

5. Fees:

Fees will depend on:

  • Due Diligence requirements & time consumed.
  • Complexity of agreement /release conditions.
  • Time validity of escrow agreement.
  • Amount Significance.

Please note that in some simple cases where one party does not wish to use escrow then letter of credits may be used instead.

6. Procedure:

  • Escrow Agent informs parties that money and/or documents have been received and kept under EAA terms. Escrow Agent keeps funds and/or documents under custody & in accordance to the EAA terms.
  • Seller presents the required documents under EAA and (a) Buyer checks & accepts them or (b) Escrow Agent checks & accepts them.
  • Seller or buyer acts on the agreement between them and informs Escrow Agent he is ready for completion as per EAA terms.
  • The Buyer deposits funds in the escrow account and/or documents under custody of escrow agent.
  • Escrow agent, Buyer and Seller agree on procedure and sign Escrow Agency Agreement (EAA).
  • Escrow Agent then releases funds to seller & documents to the buyer as per EAA terms.
  • Closing meeting is arranged and all parties attend at Escrow Agent's premises.
  • EAA is terminated.

(Note: The procedure may be changed to suit the requirements of each transaction)

7. Due Diligence Requirements:

Like any other service, we ensure that due diligence requirements are followed. Due diligence will vary according to the transaction.