Escrow is a legal arrangement whereby money, intellectual or other property is delivered to a neutral third party (called an escrow agent) to be held in trust pending the fulfillment of a contract. On completion of the contract, the escrow agent will deliver the money, intellectual or other property to the proper recipient, according to the terms of the contract, otherwise the escrow agent is bound by a fiduciary duty to maintain the escrow account.
The escrow agent is independent of both parties and protects the interests of both the buyer and the seller. The use of an escrow service eliminates or significantly reduces the risks associated with dealing with unknown parties, particularly over the internet. Escrow is commonly used in property, timeshare, vehicle, caravan and boat sales, the transfer of intellectual property and other high value transactions.
Whilst in escrow, all monies are held in a secure 'client account' until the transaction is completed. Mosslime Consultants Limited use a dedicated client account at Barclays Bank PLC. The use of a client account ensures that the monies are protected and cannot be used for any purpose other than the intended transaction. Other property in escrow, such as title deeds, is held in an equally secure environment.
Escrow services are provided by solicitors, accountants or dedicated professional organisations such as Mosslime Consultants Limited.