- Frequently Asked Questions
- Frequently asked questions
Escrow is the phrase used to refer to funds or property being held by a third party
pending satisfaction of the escrow conditions, or of the agreed criteria having
As a provider of escrow services, we act as a third party in holding funds or property until it can be released on terms agreed by all parties. Escrow services give certainty to the parties to the transaction in that:
- the buyer or fundraiser knows that the property or funds exist and will be made available to it when the transaction completes; and
- the seller or investor knows that the property or funds will not be released to the buyer or fundraiser until the transaction completes
Escrow can be used in relation to virtually any matter involving the transfer of money or property. Examples include:
- Corporate transactions including mergers, acquisitions and sales
- Charity and fundraising events
- Corporate financing and the raising of capital
- The holding of settlement funds following disputes
- Loans where release of the loan money is conditional on a future event.
- OTC Trading
- Custody Services
- Escrow Services
An escrow agreement is one entered into by the parties who have an interest in the money being paid into our escrow account or the property being held by us. It is a document which we will produce. It will include important clauses such as:
- who is advancing funds or property;
- who will ultimately receive funds or property;
- the conditions attached to when the monies or property are to be released to the recipient;
- and the basis upon which the monies paid in to the escrow account or the property held by us in escrow can be returned to the sender
Use of our escrow service is safe and reliable. All funds are held in a segregated account with a reputable bank. We are independent and so will not favor one party over the other when it comes to the release of funds or property. We understand that in today’s climate, banking fraud is an ever present fear and we do all we can to ensure that the funds in our escrow account are safe and secure.
Whilst we are registered with the Financial Conduct Authority, we are not authorized to give financial advice on how to invest money. A list of financial advisors is available on the FCA’s website.
We pride ourselves on providing a high quality service at a reasonable rate. Please contact us and we will be happy to discuss your needs and the likely costs involved.
For each escrow project we will produce for the parties a bespoke escrow agreement which will set out the terms on which the money or crypto currency being held in escrow can be accessed. Both parties will review and approve the escrow agreement to ensure that the money or property is only released in accordance with the agreed terms.
Lockscrow does not hold money in your account. Every transaction that is made will require a proof of payment for the particular transaction and is held on a pending status till the creator of the escrow completes or cancels the transaction on which the funds will be quickly refunded to the him / her.
We are set up to accept a wide range of deposit values - please contact us to discuss your requirements.
Any funds in a pending transaction does not yield any interest and will expire once the due date set for it is reached.