Guidance Note: Escrow Arrangements
This Guidance Note: Escrow Arrangements explains the various types of escrow arrangements that are most often encountered: computer program source code escrow deposit, sale of goods payment, warranty escrow, tenant’s rental security deposit escrow, document escrow, the use of deeds placed in escrow in conveyancing, and, in connection with share or business asset sales, payment of the balance of the price after completion once the price (based on value of the assets of the company/business) has been finally calculated, or deduction of an amount from the total price to settle a warranty/indemnity claim by the buyer.
An escrow agreement or arrangement is any arrangement by which one party deposits an asset (e.g. goods, money, documents or software) with another person, the “escrow agent”, so that the agent might in turn deliver the asset to another party if and when the specified conditions of the arrangement have been met. An escrow agent is an independent entity appointed by, and trusted by, the other parties to a transaction who acts as the agent of the other parties.
This guidance note also lists the various escrow documents which are available in the main folders on our website and where within those folders they can be located.
Once you have purchased access to the Business folder click on the “Download Document” button below. You will be asked what you want to do with the file. It is recommended that you save the document to a location of your choice prior to viewing.