- +506-8342-8989
- Denise.Mora@EscrowAndTrustAdvisors.com
- Los Yoses, San José, Costa Rica
Escrow Fund Management, also known simply as Escrow Service, is a secure mechanism in which a trusted third party, such as Escrow & Trust Advisors, safeguards and manages funds until the agreed-upon conditions between the parties are met.
This system is widely used in Costa Rica to ensure that funds are only released once the established agreements are fulfilled, providing security and transparency for buyers, sellers, investors, or creditors. The funds in custody can be received or sent both within and outside of Costa Rica, subject to prior validation of compliance protocols at both the origin and destination.
How does it work?
An individual or company deposits the funds with Escrow & Trust Advisors, who acts as a neutral fiduciary.
The money is held in custody until both parties fulfill their obligations.
Once compliance with the agreement is verified, Escrow & Trust Advisors releases the funds to the corresponding party.
This service is ideal for sales transactions, investments, service payments, and debt management in Costa Rica, as it prevents default risks and provides certainty to all parties involved.
This service ensures that the money delivered as earnest money in a purchase agreement is securely held until the transaction is finalized.
Earnest money*: Earnest money is an advance payment made by the buyer to the seller as a guarantee that they will complete the purchase. It serves as a commitment between both parties. If the buyer backs out, they may lose the earnest money; if the seller defaults, they must return it with a penalty.
How does it work?
The buyer and seller agree on a transaction, and the buyer deposits the earnest money into the bank accounts of Escrow & Trust Advisors as a sign of commitment. Escrow & Trust Advisors holds the funds in custody until both parties meet the agreed-upon terms. If the purchase is completed, the money is released to the seller; if not, it is returned to the buyer or the agreed penalties are enforced.
Example: A person wants to buy a house and provides an advance payment as earnest money. To avoid risks, the money is not given directly to the seller but deposited with Escrow & Trust Advisors. Once the purchase agreement is signed, the trustee transfers the funds to the seller, ensuring that everything is handled fairly and securely.
This service ensures the secure handling of funds in high-value transactions, making sure they are only released once all agreed conditions are fulfilled.
How does it work?
The buyer transfers the funds to Escrow & Trust Advisors, who holds them in their bank accounts until it is verified that the real estate or personal property has been delivered correctly and complies with the terms set forth in the agreement. Only then are the funds released to the seller, minimizing the risks of fraud or non-compliance.
Example: A company purchases expensive machinery from a supplier in another country. Instead of paying upfront, it deposits the funds with Escrow & Trust Advisors, who releases them only once the machinery is confirmed to be in good condition and in accordance with the contract.
This service streamlines payment administration and debt recovery, ensuring efficient collection processes.
How does it work?
Companies or investors transfer their loan portfolios to Escrow & Trust Advisors, who is responsible for receiving payments from debtors and distributing them as agreed. This mechanism reduces operational workload and improves financial control.
Example: An investor lends money to several individuals and wants to ensure that payments are managed correctly. Instead of collecting directly from each borrower, the investor delegates the management to Escrow & Trust Advisors, who receives the monthly payments and distributes them as agreed. If a borrower does not pay on time, Escrow & Trust Advisors may apply penalties or enforce guarantees as outlined in the agreement.
This is a mechanism that guarantees a specific obligation is fulfilled in an orderly, secure, and timely manner.
How does it work?
An individual or company deposits funds into the bank accounts of Escrow & Trust Advisors, who is then responsible for administering those funds and executing payments strictly in accordance with the previously agreed terms. This may include tax declarations and payments to the Ministry of Finance, municipal taxes, insurance, utility bills, salaries, rent, credit card bills, condominium fees, or maintenance expenses—ensuring that all obligations are met on time and in full compliance.
Example: An investor acquires a property in Costa Rica and registers it under a corporate structure. Escrow & Trust Advisors takes care of the monthly management of payments for the gardener, cleaning staff, and utility services. In addition, it handles the company’s tax and municipal compliance, making sure that all payments are made promptly and in accordance with applicable regulations—preventing delays or penalties.
Experts in Trusts, Escrow Services, and Legal Advisory in Costa Rica — we protect and manage your assets through secure, tailored solutions that meet your specific needs.
©2025 All rights reserved.
DISCLAIMER: E&T Escrow and Trust Advisors S.R.L. is supervised solely in matters related to the prevention of money laundering, terrorism financing, and weapons of mass destruction, in accordance with the regulations of the Costa Rican Financial Intelligence Unit (ICD). SUGEF does not oversee its financial activities, nor does it guarantee its security, stability, or solvency. As a regulated entity, we comply with Costa Rican regulations and apply due diligence policies to every transaction.
