Escrow - General
We have created a new subfolder of documents covering common types of escrow arrangements. The subfolder has a Guidance Note about escrow arrangements generally and typical examples of such arrangements, as well as three new escrow agreement templates for use for sales of goods. The Guidance Note also lists the various other escrow arrangement documents which can be found in our Corporate, Business, and Property folders.
Escrow - Documents for placing purchase price in escrow for use with a sale of goods
When a buyer and seller do not know each other well (or at all), they may consequently not trust each other to honour their obligations under a sale of goods contract. To minimize the risk to each of them, they may decide to appoint an escrow agent who acts as a trusted intermediary to handle the purchase price. The buyer pays the agent the price and the agent only releases the payment to the seller when certain specified conditions have been fulfilled.
Our brand new package of sale of goods escrow agreement documents consists of three new Agreement templates for use by the buyer and seller to appoint an escrow agent. These forms of document can be used for sales of any type of new or second hand goods of substantial value (for example, when selling/buying a second hand car) whether the seller and/or buyer is a business or a consumer/private individual.
The contents of this Newsletter are for reference purposes only and do not constitute
legal advice. Independent legal advice should be sought in relation to any specific