Cash Escrow or Tri-Party Escrow
A cash escrow is similar to a letter of credit with a bank. All parties agree to instructions that are submitted to the escrow agent. Upon completion of other pre-determined criteria, the escrow agent is instructed to release the cash to the designated parties. If there is a dispute between the parties, the escrow agent generally will not release funds until the parties resolve their differences, providing protection to all involved.
Many commercial transactions require an unaffiliated third party to hold funds, documents or assets until the transaction is successfully completed, or other conditions are satisfied. Cash escrow can help you avoid the over-priced need for a security or performance bond. Cash escrow agreements can be drawn to allow U.S. Escrow to guarantee disbursement of funds after completion of the agreement.
Cash escrow can be used:
- Lien or judgment holdbacks
- Leasehold deposits
- Construction or build out deposits or holdbacks
- Separation, dissolution or dispute settlements
- Limited liability partnership offerings
- Merger acquisition required holdbacks or down payments
- Employment separation payments
- Installment payments for rental or purchase contracts
- Oil well production funding escrow
- Cannabis Transactions
- Vendor verification of cash funds prior to shipping product or service delivery
- Sale of goods or services where the parties have no prior relationship with one another. Escrow can be used to insure payments upon written instructions.
- When time is of the essence, as in real estate transactions or where disbursements are required after an initial agreement.
With U.S. Escrow acting as cash escrow agent, the parties on either side of a financial agreement can rest assured that a trusted, unbiased party is working to hold and disburse funds. Call 303.224.0404 to obtain a customized quote.