Escrow Services

Escrow is a term used for an arrangement made under contractual provisions whereby a trusted third party (“Escrow Agent”) recives in custody, holds and distributes property (e.g., money, shares) and/or legal documents, on behalf of a third party, when the fulfillment of predefined conditions have been met. The predefined terms and conditions are set out in an escrow agreement (“Escrow Agreement”). The Escrow Agreement defines the specific conditions between the third party and Escrow Agent, under which the property or documents are to be held “in ecrow” and when they will be released / distributet. An Escrow Arrangement is an effective way of mitigating risk in (financial) transactions.

As a trusted third party, the Veco Group can facilitate secure and efficient business transactions. We can provide the role of the Escrow Agent, as well as assist in the drafting of the Escrow Agreements, togehter with opening and managing the segregated Escrow Accounts.

Escrow Arrangements are commonly used as an alternative secure vehicle to that of letters of credit, or to ensure completion of (financial) transactions, as the case may be, where the transaction is time sensitive in nature.

Escrow Arrangements are much more efficient, effective and flexible in comparison to letters of credit, bank guarantees or bank references. Escrow Arrangements are an affordable solution, due to the fact that escrow conditions are predefined an agreed to between the parties and Escrow Agent before the transaction takes place.

The Escrow Agent only releases the money and/ or documents from the escrow account after the terms and conditions, as defined in the Escrow Agreement, have been met. Thus providing that extra sense of bespoken control and security over the transaction.