ESCROW SERVICE
Mitchell Business Limited Trust Account is an Escrow Account or a corporate account duly owned and signatory by our law firm in which the funds are held in escrow by the lawyer on behalf of his client for undertaking any transaction. It is one of the most preferred ways to undertake business dealings in many offshore destinations.
We are not only commercial lawyers, we owned business in other sectors such as (real estate investment ,Business Consultant and management, Project management etc.) in companies located in the Australia and Hong Kong.
Our Lawyers Trust Account is the preferred way for undertaking international transactions in anywhere in the world where the funds are kept in a separate bank account and also protected by domestic legislation against any possible misuse. The facility is also available through Empire in many other destinations across the globe.
Our Lawyers Trust Account is particularly beneficial when you have to transfer or receive funds at an offshore destination, but do not have the time to establish a company or open a bank account for the same. The funds can be held in the trust account until the necessary formalities are completed.
Operating a Trust account requires specific instructions from the client to receive or send out funds and transactions through internet banking or other means are not possible. The funds are normally kept in a separate bank account managed by the funds of the lawyer and are separated from other money which may be handled by the lawyer or his firm. A small fee is normally charged by law firms for providing this service.
Escrow agreement
An escrow agreement is constituted by the legal instructions that outline the terms and conditions of a given escrow arrangement. In an escrow, a legal document or property are delivered by a promisor to a third party to be held for a specified amount of time or until the satisfaction of a condition, at which time the third party is legally obliged to hand over the document or property to the promisee. The document or property may be referred to as ‘the escrow’, and the delivery is said to be ‘in escrow’.
An escrow agreement must fully detail the conditions of the escrow arrangement, and normally includes information like the identity of the third-party (escrow agent), relevant definitions, the escrow funds, detailed conditions and pre-requisites for the release of these funds, guidelines as to the acceptable use of the funds by the escrow agent, their duties and liabilities, fees, expenses, and the jurisdiction in the event of resulting litigation or legal action.
An escrow agreement is used for protection when transacting.
It allows a party to commence a relationship or transaction with certainty that the other party can fulfil their obligations. Escrow agreements are most commonly used in the securities industry, for the sale or grant of stocks, and in real estate, where notaries or lawyers may act as escrow agents by holding the seller’s deed to the property to allow the buyer time to perform due diligence before purchase, while assuring the seller their capacity to close the deal.
The first thing you need to know about escrow services is that they are not all the same. Anyone can start up an escrow service with no capital, no insurance and little facility. If they go bust, then your cash may go with it, including your files.
Using a lawyer for escrow services gives you the peace of mind of a regulated profession with substantial professional indemnity and fidelity insurance. Absolute guaranteed safety and security at an affordable price.
What is Escrow?
Something of value, such as a deed, stock, money, or written instrument, that is put into the custody of a third person by its owner, a grantor, an obligor, or a promisor, to be retained until the occurrence of a contingency or performance of a condition.
A Depositary (escrow service) is not a party to the escrow agreement, but rather a custodian of the deposit who has no right to alter the terms of the agreement or prevent the parties from altering them if they so agree. The only agreement that the depositary must make is to hold the deposit, subject to the terms and conditions of the agreement. Ordinarily, the depositary has no involvement with the underlying agreement; however, an interested party may, in a few states, be selected to be a depositary if all parties are in agreement. In all cases, a depositary is bound by the duty to act according to the trust placed in him or her. If the depositary makes a delivery to the wrong person or at the wrong time, he or she is liable to the depositor. The document or the money is only in escrow upon actual delivery to the depositary. Ordinarily, courts are strict in their requirement that the terms of the agreement be completely performed before the deposit is released. A reasonable amount of time must generally be allotted for performance. Parties may, however, make the agreement that time is of the essence, and in such a case, any delay beyond the period specified in the agreement makes the individual who is obligated to act forfeit all his or her rights in the property in escrow.
Escrow Sale/Purchase
An Escrow purchase is designed to enable you to make a purchase or sale of an item of high value, and have the funds to pay for that item held in trust for the seller pending delivery and/or inspection of the item. The funds are held in our Solicitor’s Trust Account until approval is given to complete the transaction. This is a safe and risk-free method of conducting high value intrastate, interstate and overseas transactions.
Software Escrow is the security storage of confidential material in the event that it may need to be accessed for a legitimate purpose at some future time. Such legitimate purpose may be the death or disablement (mortal or corporate) of a software developer, thus enabling the user to continue to derive benefit from their investment in the software development. The software developer provides to the Escrow Agent, as a strictly independent agent, copies of the source code and other materials relevant to the software development. The source code is then only released to the client if one of the events set out in the Escrow Agreement between the software developer and the client is triggered. Some developers also use the service as an off-site backup and to additionally provide irrefutable evidence of version development. It can quickly shut down potential legal challenges to developmental originality, and is also useful for authors, songwriters, lyric writers, musicians etc.