Offshore International Escrow Services

What is an Offshore International Escrow? - Escrow is a way of transferring or exchanging property or money using a neutral third party called the escrow holder. Escrow provides the buyer and seller with the means of protection in the handling of funds, assets and/or documents. Escrow enables the buyer and the seller to transact business with each other through a neutral party, thereby minimizing risk.

Escrows are established to hold original documents, real estate deeds, titles to property, money or securities until conditions stipulated by both the buyer and seller are fulfilled and the items are released or exchanged. Placing the payment into the escrow is usually one of the most important demands placed on the buyer but other conditions are of course possible as well. The escrow holder is not a title insurance agency and does not guarantee that there is a clear title to any property real or otherwise being transferred. It is suggested that title searches be conducted by the buyer before the escrow is opened.

We can assist with the retention of experts in the various related fields and jurisdictions.

What Types of Products Can be Sold Using an Offshore Escrow?

Offshore Real Estate – This can be done through a offshore corporation or direct with the title. Holding and releasing of funds for subdivisions, construction.

Real Estate Lease – Often offshore real estate is leased with large payment up front, often 6-12 months rental payments. This can be escrowed so when the renter pays the money they receive a duly executed lease. A copy of the lease unsigned can be provided to the renter to review. The escrow holder ascertain that the same lease duly signed is in the escrow.

Internet Domains and Properties - transfers can be escrowed

Boats, Cars, Airplanes - Sales can be escrowed.

Intellectual Property – Software, trademarks, copyrights

Gold, Silver - represented by a safe keeping receipt in a reputable financial institution. Verification of assets is incumbent on buyer.

Holdbacks and Reserves - on corporate purchase transactions

Mergers, acquisitions and buyouts

Holding earnest money and deposits on capital-raising transactions

Investment offerings

Settlement of claims

Other products can also be handled, inquire.

Tax Advantages of an Offshore Escrow – The jurisdictions we use do not tax any capital gains occurring from the sale. Escrow jurisdiction is not in Guatemala or Panama.

Currencies Utilized for Escrows – We can work with any of the following currencies: USD, Swiss Franc, Pound Sterling, Canadian Dollar, Aussie Dollar, Euro, HK dollar.The buyer can remit to us in one currency and we can pay the seller in another currency if so stipulated in the original agreement. Conversion rates vary day to day and currency conversion charges apply. Inquire. The escrow can receive money in practically any currency as long as it is sent by wire transfer. We do not use, checks, drafts, bank checks, cashier checks, money orders or western union for escrow payments. These instruments can take a long time to clear and could potentially be reversed.

Funding Escrow With Cash - It is NOT possible to fund any escrow with cash.

Escrow based on Trades – It is possible to say trade a real estate title for a boat title. Thus the escrow has no funds just titles or ownership rights documents that are to be transferred. Verification of authenticity and clear title is incumbent on the parties involved in the transaction, not us. We can assist in the retention of experts in various jurisdiction to assist.

Escrow Secrecy - The escrow agent does not have any obligation to report the transaction to any person or entity and in fact the terms of the agreement can include a confidentiality clause. The offshore escrow provides a secure and private means to accomplish a sale of an asset.

The Agreement - The Purchase and Sale Agreement serves as the primary escrow instructions for both the seller and the buyer. It should contain all the agreements, terms, stipulations, conditions etc of the parties. The escrow agent holds monies and legal documents on behalf of the buyer and seller and handles them according to their mutually agreed upon instructions.

Escrow cannot be unilaterally revoked once it is opened and funds and documents are in the escrow. In the event of a disagreement the escrow can only be amended, changed or revoked by mutual agreement of the parties to the escrow. The agreement in its original form can contain conditions for either of the parties to back out of the escrow. The escrow agent is not authorized to comply with any instructions or demands made by any third person who is not a party to the escrow. An escrow is beneficial to both parties as a neutral party will be holding the documents, processing payments, and maintaining an accounting of transactions all with privacy.

A Breakdown of the Escrow Process

The principals to the escrow – buyer, seller, lender, borrower, etc. – cause escrow instructions, most usually in writing, to be created, signed and delivered to us.

We process the escrow arrangement, in accordance with the escrow instructions, and when all conditions required in the escrow are met or achieved, the escrow will be "closed." Each escrow, although following a similar pattern, will be different in some respects, as it deals with your property and the transaction at hand. We draft the paperwork which is tailor made to your particular case.

Our duties include:

• following the instructions given by the principals and parties to the transaction in a timely manner;
• handling the funds and/or documents in accordance with the instructions;
• paying all bills as authorized;
• responding to authorized requests from the principals;
• closing the escrow only when all terms stipulated in the escrow are satisfied;
• distribute or pay the funds in accordance with instructions and provide an accounting for same in the Closing or Settlement Statement.

Closing the Escrow - Once the terms of a transaction are confirmed between the parties through the sales agreement, neither party can change the terms of the agreement without both parties agreeing in writing. This effectively prevents either the buyer or seller changing the agreement for some advantage. Once the Agreement has been signed by both parties the transaction can go ahead quickly, safely and efficiently without disturbance.

Escrow Fees – There is an initial set-up fee of $3900.00 to set up the escrow.

This fee will include assistance drafting the sales agreement. Set up fee needs to be paid at onset, not out of escrow proceeds. Either the seller or the buyer pays this fee.

There is an additional percentage fee as follows:

• Amount of less than $100,000 – 3% of escrow amount.
• Amount of $100,001 to $500,000 – 2% of escrow amount
• Over $500,000 to $1,000,000 – 1.5% of escrow amount
• Over $1,000,000 1.25% of escrow amount

Frequently Asked Questions:

Q: Can the agreement contain other conditions?
A: Yes, the parties may decide and agree to various conditions as long as they are lawful.

Q: Can I put whatever instructions I like into the Agreement and the payment terms?
A: The answer is whatever is agreed in writing by the parties to the agreement can and will be part of the payment agreement as long as it is lawful.

Q: Can you act or take further instructions from either party once the agreement has been signed?
A: No, the agreement will be legally binding. The only way in which conditions may be changed is by the written consent of both parties. If the conditions of the agreement need to be changed a new agreement will need to be put in place and agreed to by all parties. Extra fees could be incurred to create new agreements.

Q: What if conditions are not met by one of the parties?
A: We can insert a time deadline. If the conditions are not fulfilled by one of the parties by a certain date the escrow can be dissolved. Penalties could be imposed on one of the parties taken out of the escrow if possible and placed in the agreement.

Q: Where will the funds and documentation be held?
A: We use a number of top International Banks and payment processing services. Your funds and documentation will always be safe under our audit control.

Q: What happens to my money when it’s in the Escrow account and do I receive interest ?
A: Your funds are not used in anyway. We are acting as a trusted third party to close a transaction on behalf of the agreement parties. We do not use or invest your funds. No interest is paid.

Q: Do you do any due diligence on me or the other party?
A: We ask for a notarized color copy of your passport and address verification and the source of the funds (sending Bank). And of course a copy of the parties agreement.

Q: Do you offer legal or tax advice?
A: No, we do not. We simply carry out the wishes of the parties to the agreement.

Q: Do you verify Goods prior to shipment?
A: Not independently. We rely on the services of the suppliers and consultants that have been identified and agreed to by the parties. We can assist in the retaining of experts in various fields. We do not verify any goods or their authenticity ourselves.

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Questions welcome.