Escrow agent services

Escrow agent services

Escrow is a globally recognised legal mechanism. It involves an escrow agent, a third party, holding money or property for contracting parties when, for instance, there is a deferral of payment under a contract or of a transfer of ownership title to the item that is being acquired. The escrow agent keeps the property under a contract and then transfers it to either party as long as certain conditions are met.

The approach is relevant when contracting parties want an independent third party to keep a deferred payment or other property until the conditions occur that the parties have agreed upon. At that point, the independent arbiter transfers the assets or part of the payment to the relevant party.

Escrow agents are traditionally used in global practice in the context of:

  • real estate transactions;
  • transactions in securities (shares, bonds, etc.);
  • transactions involving goods (supply, exchange, etc.)
  • when services are provided and work is performed (services, contractor’s services, etc.)
Not until a reform of civil legislation in 2014 did this legal mechanism first appear in Russia. Since 1 June 2018, considerable changes in escrow regulation have come into effect, meaning that law firms may now act as escrow agents.

Pepeliaev Group is pleased to offer to its clients services involving:

  • drafting escrow agreements and providing legal support when they are concluded;
  • providing legal support during negotiations and devising the approach when contracting parties use an escrow mechanism; 
  • escrow agent services.

Pepeliaev Group's advantages:

  • we are flexible and responsive in decision-making and the use of escrow mechanisms, at the same time complying fully with current legislation;
  • we can handle legal matters relating to an escrow agreement ourselves, without any need to outsource;
  • our pricing policy is flexible and takes account of the specific nature of the transaction;
  • we are a known quantity, with our solid reputation guaranteeing our clients integrity, impartiality and commitment to discharging our obligations properly.