What is the subject of deposit
We immediately draw your attention that the escrow object is both money and traditional things, however, movable. That is, real estate is excluded from this list as such, but it is recorded in the contract as a sum of money that must be paid for the full or partial rights to it.
As a standard, all movables (including cash, certificated securities, and documents) are included in the list of deposit objects; non-cash funds, as well as non-certificated securities; partial or full rights to real estate.
In relation to different types of movable things, a different legal regime has been established. As for the things transferred to the deposit, the depositor is their owner until the date of their transfer to the beneficiary, and after the grounds for transfer have arisen, the deposited items with all property rights are transferred to the beneficiary. The escrow agent is not the owner at any stage, but is responsible for the safety of the deposited items.
It turns out a curious confusion where the rules on the property trust management agreement and the storage agreement can be seen. But since the object of escrow are both non-cash money and non-certificated securities, this is not a storage agreement, but a special kind of agreement.
Hence, special attention to the mode of depositing this type of property. If the escrow agent is a bank, this scheme is simplified. But if the escrow agent is not? In this case, the escrow agent has a nominal account on which non-cash funds or certain rights are placed. And in this construction, the beneficiary of the funds is the depositor until the date provided for by the escrow agreement, after which, if there is a reason for the transfer of property, it is transferred to the proper beneficiary. The agreement is considered executed.
There are collisions when the agreement does not specify a date, but it is the event that is the basis for the transfer of values that is stipulated. In this case, the role of the escrow agent is difficult to diminish, since it is on his shoulders that the burden of checking the fact of the specified event is borne. It is up to him to decide whether the beneficiary will receive money from the nominal account or exercise the rights relating to it.
So, once again you can make sure that the decisions of an escrow agent determine the financial and legal relations between the depositor and the beneficiary; therefore, the correct choice of such a key person is very important.