Specialised services

How can the buyer be protected against, for example, incomplete environmental permits? The departure of key managers? Serious financial underperformance and/or other threats? The buyer requires 100% coverage for these potential liabilities. The seller, however, needs to be assured of payment in the event that no liabilities are found.

The best solution? We set up an agreement to retain a certain amount of the purchase price in a dedicated blocked bank account: the escrow account. Buyer and seller reap the benefits of the escrow agreement, where the release conditions of funds are negotiated expertly. And given that both buyer and seller seek maximum security, Intertrust is a natural choice, with the experience, skills and capacity to act on short notice. Other escrow applications are: securing performance bonds, bid bonds, multi-party investments and fractional ownership structures.

However, if you’re the buyer, you need assurance that the seller will deliver. Both the buyer and the seller can benefit from escrow in order to secure the transaction.

Acting as a trusted third party, Intertrust provides both buyer and seller with the required security. Here’s how it works: the buyer prepays the agreed amount to the escrow account. We confirm receipt of this amount to the parties. The seller ships the goods and sends the bill of lading to the escrow agent. The escrow agent dispatches to the buyer the bill of lading and possibly also the inspection certificate. Simultaneously, the seller is paid out of the amount in escrow.
The advantage? The seller is assured that—assuming the goods meet the terms of the sales agreement—payment is guaranteed. Furthermore, the escrow arrangement between the same buyer and seller can be used for repetitive transactions.

For example: consider the financial arrangements for construction projects. Principals require performance guarantees. Subcontractors need payment security. Intertrust handles everything: setting up the account; managing the funds; distributing payments. With an escrow agreement we assure that all parties receive what they’re entitled to (payments or services).

Intertrust is the trusted, neutral third party that orchestrates the arrangement; we expertly negotiate and execute release conditions for complicated cross-border projects. The benefit to you? Escrow agreements that provide the much-needed security to all parties involved.