What are the advantages of escrow design?

In what cases an escrow agreement is preferable to other types of transactions? It gives clear benefits in several situations.

For example, when there is an “exclusive” legal regulation established by law for the property being deposited.

Or when it is necessary to independently determine the basis for full payment. An escrow agent performs a compliance check on the fact of the property specified in the list or the occurrence of legal actions, for example, a change of management or shareholders.

When concluding an escrow-agreement, the beneficiary is insured against default by the depositor, regardless of the complexity of his economic situation, force majeure, etc.

For the debts of the beneficiary, a claim is made on his claim to the escrow agent for the transfer of the deposited property. This scheme allows you to insure the safety of assets, for example, when buying a business or at different stages of a complex transaction.

This construction also works well under lease agreements, where part of the rent may be deposited, and the contract provides for the return to the tenant of this amount in the absence of damage to property during the lease. If the leased property is damaged, the lessor will receive the deposited amount. It will act as a kind of insurance against possible damage.

Escrow agreements are also convenient to use in inter-creditor agreements. The debtor reimburses the escrow agent's debt, and he acts as an intermediary distributor between creditors under the contract in fulfillment of obligations for debts.

Very important information for the beneficiary: it is impossible to collect, arrest or take other measures in respect of the deposited property on the debts of the depositor or escrow agent. The law determines this measure in respect of any property, therefore, the funds deposited are also protected.



 I’m a custodian of my parents’ traditions

I can remember that in my childhood my parents traditionally exchanged their homes with their best friends’ family for a week. It was always a memorable travel. I dreamt then how wonderful it would to have such friends everywhere and to travel to different parts of the world. As a kind fairy godmother, Alliance Family Club has realized my dream in the adult life. Meetings, communication and discussion of the projects with other shareholders of Global Actual Services naturally give me an opportunity to have many good friends round the whole world. Please, don’t change your dreams just because you don't know how to make them come true. You’ll learn with us how to do that!

Nana Franchetti about holiday ownerhip
The head of the Trust Company Global Actual Services