An “Escrow” is when two parties appoint a neutral third party to hold something for them (typically money, software code, or assets) on terms they mutually agree for that ‘thing’ to be released to one or the other of them when certain conditions are deemed to have been satisfied. The word “escrow” derives from an Old French concept, “escroue”, which was a parchment scroll held by the third party until a transaction completed.
Escrow provides a form of additional security when parties aren’t content fully to commit to merely contractual arrangements, e.g. because of the value of what is secured, and often due to concerns about possible long-term co-operation (e.g. after possible insolvency or transition).
The necessary characteristics of any Escrow service provider are neutrality and reliability/security.
Hargreaves Mounteney Trustee Company Limited offers excellent Security as an Escrow provider deriving from:
1. Trustee banking arrangements rendering client deposits independent from our own finances
2. £3M of Solicitor’s Regulatory Authority-compliance professional indemnity insurance
3. £¼M capital as a Trust corporation – also subject to a Trust Corporation’s constitution
4. Heavily regulated management by professional solicitor
This product is for Hargreaves Mounteney Trustee Company Limited acting as an Escrow provider (i.e. holding the pledge), and includes our agreeing the terms on which we will do so.
How long will it take?
We don’t generally do anything for new clients until our process of client retention has concluded – this involves agreeing the scope of what we are doing for the price (our terms are below), setting-up our client record (that includes ID checks), and producing the bill (payment in advance is required for all new clients).