Escrow Services | Safeguard Your Assets And Reduce The Risk Of Fraud
What is Escrow and Why Do You Need It?
Escrow is a legal arrangement whereby an asset (usually funds) is delivered to a trusted third party (the escrow agent) to be held pending a contingency or the fulfillment of a condition as predefined in an escrow agreement. Upon that event occurring, the escrow agent will release the funds to the proper recipient.
The law firm at which I'm currently working is now providing efficient and professional escrow services to those who want to protect their assets in any commercial transactions. For your information, Hong Kong has a well-established common law system based on English law, where the rule of law is upheld by an independent judiciary. As a senior lawyer practicing for more than 20 years, and with substantial experience in international commodity trading and financial transactions, I can draw up an escrow agreement that's customized to your needs.
Those who're doing business must use escrow services because it can help facilitate transactions and reduce risk, and most importantly, to combat scammers. Escrow services can be used in a wide range of corporate transactions. To name a few, BG/SBLC transaction, merger and acquisition transaction, project finance, trading activities, selling and purchasing commodities. Further, escrow can also be used as a "proof of funds" in the situation where a purchaser wants to reassure a seller that he has sufficient funds to complete the transaction. That’s why so many companies turn to me for escrow services.
Upfront fees were required for the issuance of a Banker’s Guarantee / Standby Letter of Credit (BG/SBLC). An applicant had paid the upfront fees, but the BG/SBLC wasn't delivered, as a result of which, the applicant lost his fees. Had he used my escrow services, he wouldn't have suffered a loss. He now understands how crucial is escrow in his next business deal.
Risk reduction is top of mind in any global transaction, and escrow services are always a smart solution to reduce the risk of fraud and protect your asset. I can help you develop an escrow transaction structure that will work for you, and to ensure that your funds are fully protected during the entire escrow period.
Escrow Agent Fees
For the Hong Kong escrow agent fees, it's in the range of 0.5% - 1.5% of the amount in escrow, depending on the size of the business deal and its complexity. You may be able to find other escrow agents who can offer a lower rate that looks appealing now, but please bear in mind that it'll become much more expensive if anything goes wrong.
When you engage my law firm for escrow services, it sets up an escrow account and a companion escrow agreement is drawn up. The escrow agreement is well-drafted and tailor-made to ensure that your funds are fully protected up to closing.