Frequently, parties in a transaction or litigation require a third-party to hold funds in escrow for real property, business personal property and mergers and acquisitions. As trusted agents, the attorneys for Hancock McGill & Bleau collect, hold and disburse funds in strict accordance with the parties’ escrow agreement.
5 Things You Need to Know About Escrow:
- In general, escrow refers to money held by a third party on behalf of parties to a transaction.
- Escrow examples include title companies, which hold earnest money in escrow until funds are dispersed at closing. Escrow agreements are used in mergers and acquisitions to augment the warranties and indemnities offered by the seller.
- The escrow agreement determines the length of time the funds are held and the circumstances under which the funds will be released. It also includes provisions specifying the escrow agent, agent duties, and jurisdiction and venue if litigation occurs.
- Escrow fees are usually set based upon a variety of factors: the (i) amount in escrow; (ii) length of time the funds are held; and (iii) number of draws required during the duration of the escrow.
- The growth of e-commerce has produced a huge increase in the number of Internet-based companies offering escrow services. Unfortunately, the incidence of online escrow fraud has grown as well. You should take care to research any potential escrow company to ensure your funds will be properly protected.
Hancock McGill & Bleau specializes in transactions in trust. We will safeguard your escrow funds and provide expertise to ensure compliance with the terms of the escrow agreement. Or attorneys are licensed by the State Bar of Texas, and we have professional liability insurance coverage.