Do you have a pending business transaction requiring an independent third party to hold documents or funds, while certain conditions are still to be complied with, by both contracting parties?
An escrow is a tripartite agreement whereby the bank, as escrow agent, holds assets or documents deposited by the contacting parties or principals, the eventual delivery of which to a designated party is dependent upon the consummation of certain events, or actions performed by the parties concerned.
An escrow reduces the risk of fraud and protects both transacting parties' interests.
- Common escrow uses
- real estate buy and sell
- deferred payment of BIR capital gains tax in real estate sales (RA 8424)
- POEA-licensing requirement for recruitment, shipping, manning and travel agencies
- Customized escrow agreement based on clients’ requirements
- Escrow funds may be invested for the duration of the escrow term
- Protection of interest of contracting parties
- Competitive trust fees based on amount, duration and complexity of the escrow account