Escrow Account

An Escrow Account is a bank account subject to certain conditions that are specially drawn up by the bank on the basis of commercial agreement between the buyer and the seller.

An Escrow Account is a useful alternative, if you sell or buy a valuable real estate or movable property or make any other payment transaction and wish to have payment or property transfer. An Escrow Account can be used in export deals and orders, constructional, renovation and other projects, processed according the contacts, mediated trade.

Procedure of payment using an Escrow Account

• Buyer, seller and the Bank should conclude a three-party Escrow Account Agreement. The Agreement determines what documents the seller must present to the Bank in order to gain access to the funds on the account, after the obligations established in the Agreement are fulfilled.
• Buyer transfers money to the Escrow Account.
• The Bank should hold funds by maturity specified in the Agreement until established obligations are fulfilled and should assure payment of money within established period provided the terms of the Agreement are met in due time, or return funds to the buyer if the terms are breached.