- +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 administers funds until all agreed-upon conditions between the parties are met. This system is widely used in Costa Rica to ensure that funds are only released when contractual terms are fulfilled, providing security and transparency to buyers, sellers, investors, or creditors.
How does it work?
1. An individual or company deposits funds with Escrow & Trust Advisors, who act as a neutral fiduciary.
2. The funds are held securely until both parties meet their obligations.
3. Once the terms are verified, Escrow & Trust Advisors release the funds to the appropriate party.
This service is ideal for real estate transactions, investments, service payments, and debt management in Costa Rica, as it mitigates non-compliance risks and offers 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 represents a commitment between both parties. If the buyer backs out, they may lose the 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 an amount with 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, which holds them until it’s verified that the real estate or personal property has been delivered correctly and in compliance with the terms outlined 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, which releases them only once the machinery is confirmed to be in good condition and compliant with the agreed terms in 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, which is responsible for collecting payments from debtors and distributing them as agreed. This process reduces operational workload and improves financial control.
Example: An investor lends money to several individuals and wants to ensure proper payment management. Instead of collecting directly from each borrower, the investor assigns the management to Escrow & Trust Advisors, which receives the monthly payments and distributes them accordingly. If a borrower defaults, Escrow & Trust Advisors may apply penalties or enforce guarantees as outlined in the agreement.
This mechanism ensures that specific obligations are fulfilled in an organized and secure manner.
How does it work?
An individual or company (the trustor) deposits funds or assets with Escrow & Trust Advisors, which manages and releases them only once all agreed conditions are met. Beneficiaries receive their payments or assets at the appropriate time, ensuring that all parties meet their commitments without risks or delays.
Example: A construction company deposits funds into a trust with Escrow & Trust Advisors to guarantee that payments to its suppliers are made based on project progress. The fiduciary releases the payments only when the agreed milestones are met, providing all parties with safety and transparency.
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.
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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.
