Relationship of the parties to the escrow agreement

According to the escrow agreement, the participation of three parties is stipulated. It is a depositor, a beneficiary and an escrow agent. Both legal and physical persons can be in the role of the depositor and the beneficiary. Their status is not limited by law, so this scheme is not only entrepreneurial.

The role of the escrow agent is very important. He is the guarantor of the transaction. The law also does not limit his official status. Banks and notaries can perform this role. For notaries, this type of activity is not completely new. Earlier, notaries took cash and securities on deposit to later transfer to the creditor.

For credit institutions (banks), this service is becoming more and more popular, albeit a newer one. As escrow agents, banks and notaries are more credible but they charge more for their services than just an “intermediary”, as it is the price of security guarantees. This function is often performed by lawyers and licensed specialized commercial structures.

So, according to the law, an escrow agent is any third party competent, legally capable, independent, acting as an intermediary between the depositor and the beneficiary. He must verify the correctness of the fulfillment of the transaction terms by both parties, and only then transfer the funds (property) entrusted to him to the beneficiary.

When making bilateral deals, which is common in civil law relations, a mutual escrow is legally stipulated, in other words, two parties to the contract appeal to an escrow agent at the same time. That is, each side acts simultaneously as a depositor and as a beneficiary. Such a construction is often used if the contract was concluded, but the parties did not fulfill it or the trust between them was not complete due to some circumstances. To guarantee the fulfillment of the contract, the parties turn to the services of an escrow agent. He acts as a kind of "arbitrator" in such complex transactions. But mutual escrow is not necessarily used only in conflict situations, it can be an ordinary bilateral transaction.

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