Escrow payment is a method of settlement between natural or legal persons, when with the means of a trilateral agreement concluded between a bank, a depositor and a payee, the bank undertakes to transfer funds kept in the Escrow payment account to the payee upon fulfilment of the conditions specified in the contract of the Escrow payment account.
- It ensures secure settlement in large transactions, i.e. when buying or selling high value assets (corporate shares, real estate, etc.)
- The funds are transferred to the beneficiary (seller) when the bank is submitted the documents specified in the Escrow payment account agreement, confirming fulfilment of the transfer conditions
- Funds transferred to the Escrow payment account may be used only in accordance with the procedure and purpose specified in the agreement.
- The bank, the depositor and the payee enter into a tripartite agreement on a Escrow payment account specifying the terms and documents to be submitted to the bank for transferring the money to the beneficiary.
- On behalf of the depositor, an Escrow payment account is opened to which the depositor must transfer funds for the purchased property.
- When documents are submitted to the bank confirming the fulfilment of the conditions provided in the Escrow payment agreement, the funds are transferred to the beneficiary. If the conditions are not fulfilled by the due date, the funds are returned to the depositor.
Please kindly contact the Šiaulių Bankas customer service department or tel. 1813 (+370 37 301 337, if calling from abroad).