In documents escrow arrangement, an escrow agent is acting as an independent and neutral party who collects and safe-keeps certain type documents for until a certain predetermined conditions and situations occur and upon confirmation from the instructing parties, the escrow agent will distribute the documents as per the escrow agreement.
How it works
Party A and Party B agree on transaction documents
Party A and Party B engage Escrow SG as their escrow agent. An escrow agreement will be signed between Party A, Party B and Escrow SG.
Party A and Party B send original, undated signed transaction documents to Escrow SG.
The escrow arrangement is in place until:
Both Party A and Party B agree that the escrow conditions for fulfilled and they agree to instruct Escrow SG to date and release the signed transaction documents, or
Both Party A and Party B agree that the escrow conditions are not met and agree to destroy the undated signed transaction documents, or
Party A and Party B are in disagreement on whether escrow conditions have been met or not. Escrow SG or an independent third party will determine if the escrow conditions are met or not; and action on the transaction documents accordingly.
5. If 4a occurs, Escrow SG will date and release the signed transaction documents to Party A and Party B.