UK Property Transactions and Escrow: Protecting Funds with Confidence
18 March 2022
- Contact Sue Wakefield
- Director, Head of Business Development
- [email protected]
- +44 1565 748 825
Using Escrow accounts is becoming increasingly popular across a number of sectors.
Traditionally and still widely used for M&A transactions where funds are retained post sale to cover warranties and claims, we are now seeing Escrow becoming more mainstream to help manage risk and provide security. One growing area of use is in UK property transactions, including construction, residential and commercial sales, and litigation.
With real estate values continuing to climb and UK property sales at an all-time high, it is unsurprising that more clients require our property Escrow services.
Protecting funds has become of paramount importance, and we have seen some funders in the construction industry making Escrow accounts for client deposits mandatory.
How ZEDRA can help with property Escrow Arrangements
Our ability to provide Escrow services swiftly, subject to satisfactory due diligence, coupled with the fact we are regulated by the Financial Conduct Authority as an Authorised Payment Institution, make us an ideal choice for UK Escrow services.
We have straightforward Escrow Agreements available, but we can also create bespoke Agreements tailored to your specific requirements.
We have no minimum value and can support a variety of transaction types from short term to indefinite arrangements, from those with minimal activity all the way through to heavily transactional arrangements.
If you would like to find out more about how Escrow may suit your needs in relation to a property transaction or development project, and how best to protect funds, please contact Sue Wakefield.
Frequently Asked Questions
Escrow is increasingly used in property transactions including construction, residential and commercial sales, and litigation, offering secure protection of funds.
Escrow is becoming more common because some funders in the construction industry now require escrow accounts for client deposits, and clients are increasingly seeking secure ways to protect funds during property transactions.
Yes, in some cases. Funders in the construction industry have begun requiring Escrow accounts for client deposits as part of their risk management policies.
Subject to clients providing satisfactory due diligence in a timely manner, the service can be established within a matter of days.
Yes. ZEDRA offers both standard and customised Escrow agreements tailored to the needs of each transaction.
