Legal & Corporate

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Quick Enquiry

Please complete the form below and we will make sure your query goes to the right person to respond to you as quickly as possible.

The information you submit will be handled in accordance with our privacy policy.

Legal and Corporate Escrow Services

Riverside Escrow offers legal and corporate escrow services which provide certainty to legal transactions.  

Dispute Resolution Escrow Services

Escrow services can be utilised when a dispute or litigation is settled and one party is required to pay money to the other as part of the settlement. In most cases escrow services are used when settlement monies may be due to be paid from one party to another, however the finalisation of the settlement is still pending.

The settlement monies are paid into the escrow account. The escrow service provider holds the sum of money until the settlement is finalised, and they have been notified of the outcome, usually by means of a court judgement or joint instruction from the parties in dispute after settlement. The escrow services provider will then release the funds to the relevant party.

 

M&A Escrow Services

It is common place for corporate transactions to utilise escrow services when it comes to dealing with deferred consideration or earn outs. Both scenarios require the releasing of funds following completion, either on a set date or when certain criteria has been met.

Using escrow services provides the seller with reassurance that the buyer has the necessary funds to complete the purchase, as well as providing the buyer with the knowledge that the funds will not be released until the agreed conditions have been met.

Legislation case study

Riverside Escrow was instructed by a top 20 Legal 500 law firm and Council on the opposite side, in connection with a dispute between their respective clients. 

The dispute arose in connection with a high value property. The parties agreed the settle on the basis certain conditions were me t by Party A. As security for this, Party A paid the amount agreed in the settlement agreement into escrow to act as security for its obligations to Party B. Where those obligations were not met Riverside Escrow was contractually obliged to release the sums held in escrow to Party B. 

Additional release triggers were included in the escrow agreement to permit Riverside Escrow to pay sums to third parties, such as estate agents and the mortgage company on receipt of a valid invoice, where Party A fails to do so. 

On completion of the mandatory Know Your Client checks, Riverside escrow accepted the escrow sum into its dedicated client account, which was held securely pending the co occurrence of any trigger events. 

Party A was able to offer a fast and cost-effective solution to Party B’s security requirements rather than needing to deal with the complexities which offer security such as debentures, charges or personal or corporate guarantees. Party A successfully performed its obligations under the settlement agreement, resulting in the escrow sums being returned to them. 

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