Escrow Arrangement use cases: business sales, property & more
16 June 2021
- Contact Sue Wakefield
- Director, Head of Business Development
- [email protected]
- +44 1565 748 825
The use of Escrow accounts continues to grow in the UK. We asked our team in Manchester what sort of requests they are seeing. Below is a selection of Escrow examples of where ZEDRA’s services have been required.
Residential Property Sale
The team have recently worked on a residential property sale where there had been a potential breach of a restrictive covenant. A proportion of the sale proceeds have now been placed in an Escrow Account to be held for 12 months in the event that historic works need to be undone and the property reinstated to its previous condition.
The Sale of a Business
ZEDRA’s Sue Wakefield and her team have supported a company owner in connection with a sale of a business. The company in question had employed a consultant company to arrange the sale and this comany was receiving a fee for their services. The fee was placed into an Escrow account to be released once the sale completed smoothly.
Commercial Property Transaction
The team in Manchester has successfully provided Escrow Arrangements in relation to the sale of a commercial property between two parties, where, in order to secure the sale, the sellers guaranteed an income to the buyers. If a tenant is found, the funds will be returned to the seller. If a tenant is not found, the funds will go to the buyer.
Construction Project
In connection with the building of residential accommodation the funders had required that the purchasers’ deposits are placed in Escrow until completion of the project. The team have made all of the relevant arrangements.
Divorce Proceedings
An Escrow was required under the terms of a court order pursuant to divorce proceedings until certain tax liabilities and legal liabilities were settled. The Manchester team was able to ensure the Escrow was set up quickly and smoothly.
ZEDRA has can provide Escrow for a variety of purposes and values and offers an efficient, cost-effective service reducing risk and offering peace of mind to clients.
For more information on our Escrow services or if you would like to discuss a specific transaction, please contact Sue Wakefield.
Frequently Asked Questions
ZEDRA can support Escrow arrangements across a wide range of scenarios. For example, we’ve facilitated Escrow accounts for residential and commercial property sales, business transactions, construction projects, and divorce settlements.
Yes, ZEDRA can handle residential property transactions. In one case, we held part of the sale proceeds in Escrow for 12 months due to a potential breach of a restrictive covenant, offering reassurance to both parties.
ZEDRA’s efficient onboarding process and experienced team enable Escrow Arrangements to be established within a matter of days, crucial for high-stakes transactions where timing is key.
Yes, ZEDRA regularly supports Escrow Arrangements in business sales. For instance, we managed an Escrow Account to hold a consultant’s fee, which was released once the transaction completed smoothly.