Escrow Services - Safeguard your assets and reduce the risk of fraud
What is Escrow and Why Do You Need It?
Every businessman and broker should need escrow services for facilitating transactions and reducing risk, and most importantly to combat scammers. 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 is customized to your needs to ensure that your funds are fully protected during the entire escrow period.
Hong Kong has a well-established common law system based on English law, where the rule of law is upheld by an independent judiciary. My law firm is now providing efficient and professional escrow services to clients with a variety of different business needs. 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 shall release the funds to the proper recipient.
Escrow services can be used in a variety of transactions. For example, an upfront fee is required for the issuance of a Banker’s Guarantee / Standby Letter of Credit (BG/SBLC). I have often heard that many people were cheated by paying upfront fees for the issuance of a BG/SBLC., Upfront fees were paid, but the BG/SBLC was not delivered at the end. Had they engaged my law firm for escrow services, they would have been protected by a well-drafted escrow agreement and would not have lost their upfront fees.
Escrow Agent Fees
For Hong Kong escrow agent fees, it would be in the range of 0.75% - 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 offer a lower fee, but please bear in mind that hiring a cheap one may look appealing now, it will become much more expensive if anything goes wrong.
Once you engage my law firm to provide escrow services, it sets up an escrow account and a companion escrow agreement is drawn up. The escrow agreement is tailor-made to ensure that your funds are fully protected up to closing.