Escrow made simple, secure and swift
- Contact Sue Wakefield
- Director, Head of Business Development
- [email protected]
- +44 1565 748 825
Leading complex transactions and large-scale deals through to completion is like conducting a high-stakes orchestra.
You must coordinate multiple elements in parallel to maintain harmonious progress, avoid friction and close your piece on time.
With so many variables at play, an expert escrow service is essential for anyone conducting a major transaction. An escrow agent does far more than just safeguard assets: a first-rate escrow service can increase the likelihood of a timely and successful closing, all while affording you peace of mind (so you won’t miss a beat).
ZEDRA is an FCA Authorised Payment Institution in the UK, which means our clients’ funds are safeguarded with the highest standards. Our UK escrow services support and streamline transactions across a range of industries, deal sizes and complexity levels. From mergers and acquisitions to real estate deals, opting for an independent escrow service can mitigate risk, strengthen SRA compliance, and reduce administrative burdens. Thanks to our expertise and established relationships with Tier 1 banks, we can ensure swift onboarding and sustain even the tightest of timelines.
What are escrow services and paying agent services?
Escrow is a legal term which refers to money, goods or documents that are held by a trusted third party, pending the fulfilment of some condition.
Escrow services are essential when two or more parties enter into a transaction requiring funds or assets to be passed from one company or individual to another.
A common example of escrow services in the UK comes from the corporate world, where escrow is widely used for M&A transactions when funds are retained post sale to cover warranties and claims.
Paying agent services are slightly different and support the later stages of a transaction. A paying agent expertly manages all onward payments related to a transaction, thereby reducing risk and offering impartiality to all parties involved.
To streamline transactions, it’s ideal to work with a trusted third-party agent who can offer both authorised escrow services and paying agent services in tandem. This will ensure that critical information is collected, managed and shared appropriately, saving you time and ensuring greater precision and reduced risk for your transactions.
When should you work with an escrow company?
There are many situations in which it can be beneficial – or even mandatory – to work with an escrow agent in the UK.
Cases where escrow services in the UK are commonly used include:
- M&A transactions
- Sale of a business
- Property transactions, such as the sale of a commercial or residential property
- Purchases of luxury assets including super yachts
- Purchases of art, jewellery, antiques, cars and other items where an escrow agreement can safeguard all parties’ interests
- Fund transactions
Additionally, to comply with Rule 3.3 of the UK’s Solicitors Regulation Authority (SRA) Account Rules, law firms must no longer handle retained client funds, as this can be viewed as executing banking functions in the SRA’s eyes, thereby increasing money laundering risk.
Simply put, this means law firms should not act as escrow agents for their clients. Instead, law firms are advised to work with an independent UK escrow service provider to minimise both the risk and administrative burden of payment distribution.
What are ZEDRA’s escrow services, and how can they help?
We offer escrow services to support a range of transactions, including:
- Drafting the material contractual terms of the escrow agreement
- Agreement negotiation with the involved parties and external advisers
- Swift setup of the service to support the transaction (with no restrictions on amounts)
- Management of controlled accounts, including paying agent services and the ultimate distribution of funds
- Escrow services in relation to luxury assets purchases
Our escrow services are most suitable for transactions requiring:
- Speed: Our established relationships with Tier 1 banks mean swift setup and adherence to tight timelines
- Simplicity: Let an experienced escrow agent do the heavy lifting and streamline processes, so you can focus on even more strategic objectives
- Flexibility: Both out-of-the-box and bespoke agreements are available, depending on the complexity of your transaction
- Global reach: We can support transactions with multiple payments to UK and non-UK accounts in multiple currencies
- Security of funds: ZEDRA Trust Company (UK) Limited is authorised and regulated by the UK’s Financial Conduct Authority (FCA), meaning our escrow services are subject to FCA safeguarding rules
- Risk mitigation: Choose a trusted independent escrow provider to ensure SRA compliance
Learn more about the different types of UK escrow services we provide, from corporate escrow services to property escrow and beyond.
Why choose ZEDRA as your UK escrow agent?
Not all escrow agents are created equal. With an independent, experienced and regulated firm like ZEDRA, you’re in good hands.
- Your funds are safe
As an FCA regulated firm and escrow provider, ZEDRA guarantees complete security for your clients’ funds. We use banks operating in the UK with Tier 1 capital adequacy for your peace of mind. - Speedy service and a seamless experience
Getting the service set up is painless and fast, thanks to our established banking relationships, responsive teams and efficient due diligence. - Your escrow needs are covered, no matter how complex
Whatever the size, value, currency, or complexity of your transaction, ZEDRA’s escrow services can support you with a bespoke solution. - Benefit from our team’s deep expertise
The combined experience of our professionals across trust, operations, and legal is pivotal to the continued success of the service and our clients’ satisfaction. - We stay flexible for you
Any given transaction can come with a host of complications and curveballs. With so many moving parts, the journey to completion may not always be a straight path – but at ZEDRA, unlike traditional providers such as banks, we can remain flexible, whether that’s combatting delays in the transaction pipeline or shifting strategy along the way.
Whether you’re in the market for more traditional M&A or corporate escrow services, or need a reliable escrow agent for real estate deals, choosing the right escrow service provider is a pivotal step.
Our Team
Sue Wakefield
Laura Tommis
Peter Skelly
Who are our UK escrow services designed for?
ZEDRA’s escrow services and paying agent services are suited to legal professionals or corporate clients requiring an independent, trusted agent for efficient and expert handling of the safeguarding or distribution of funds.
We regularly act as an escrow agent to M&A lawyers, real estate firms, private clients, solicitors working in property and construction, and other parties involved in complex transactions.
Our escrow services present a reliable solution for any professionals looking to ensure compliance with Rule 3.3 of the SRA Account Rules, which prohibits law firms from handling retained client funds in-house due to increased money laundering risk. Partnering with an independent escrow provider like ZEDRA can help ensure SRA compliance while reducing administrative load.
Though we are a UK-based escrow agent, we can support deals with global scope that require payments to both UK and non-UK accounts, in multiple currencies.
Contact Sue Wakefield to learn more about how ZEDRA’s escrow and paying agent services can suit your specific needs.
Frequently Asked Questions
An escrow arrangement is a contractual agreement in which a neutral third party — the escrow agent — holds assets or funds on behalf of transacting parties until predefined conditions are met.
Companies use escrow services to reduce risk, ensure impartiality, and provide transactional certainty in complex or high-value deals.
Yes. ZEDRA is authorised by the Financial Conduct Authority (FCA) in the UK to provide escrow services.
ZEDRA supports corporate transactions such as M&A deals, real estate transactions, litigation settlements, regulatory-driven escrow, employee incentive schemes, and more.
Yes. ZEDRA often acts as both escrow agent and a paying agent to streamline processes, reduce duplication of effort, and ensure seamless payments.
ZEDRA can receive and distribute funds in GBP, USD, EUR and other currencies, and can support parties located in various jurisdictions.
Yes. ZEDRA has precedent documents available, or clients can work with ZEDRA’s legal team to create bespoke agreements tailored to the transaction.
ZEDRA works with law firms, private equity funds, financial institutions, multinational corporates, and high-net-worth individuals.
Escrow can be required in situations where compliance with the Solicitors Regulation Authority (SRA) Account Rules is necessary. These rules mean law firms should not hold retained client funds directly and may instead work with an independent escrow provider to reduce risk and administrative burden.
Escrow services involve holding funds, goods or documents until agreed conditions are met. Paying agent services support the later stages of a transaction by managing the onward distribution of payments to the parties involved.
Escrow is commonly used for money, but it can also cover goods or documents such as contracts and deeds. High-value assets such as yachts, art, jewellery and antiques can also be held in escrow to protect the interests of all parties.
In mergers and acquisitions, escrow is often used to retain funds after completion. These funds can cover warranties or claims, offering reassurance for both buyers and sellers.
Tier 1 banks are recognised for their strong capital adequacy and stability. Working with these institutions allows escrow providers to offer security of funds and faster account setup.
Escrow can help reduce risks such as delayed payments, fraud or disputes. Funds are only released once the agreed terms are met, which is especially important in high-value property or asset transactions.
Yes. Escrow agreements can be prepared using precedent documents or developed as bespoke arrangements, depending on the complexity of the transaction.
