We will not set up a new account to serve as an escrow account, but we will allow our client account to be used for that purpose subject always to Rule 3.3 of the Solicitors Accounts Rules (re provision of banking services via the client account), checks on the source of funds of the parties seeking to make a deposit (who should make that deposit via their solicitors wherever possible) and agreeing a suitable fee.
We recommend a fee of £3,700 for your time, though it will be whatever your time costs require and Central Office charges a further £3,700 for this service. This allows for up to two payments out from the account (note: a single drawdown to two parties separately, counts as two payments). If there will be more payments, then you should budget for the maximum number at an additional £525 per payment. Central Office's charges do not include the bank transfer fee.
You should send the signature draft Escrow Agreement to the Director of Operations and Compliance, who can check it and sign it on request. You don't have authority to sign on behalf of Keystone for a commercial agreement such as this. On receipt of funds, they will be blocked in our account.
If the client needs a separate bank statement and separate interest, then escrow funds can be placed in a designated deposit account, a separate area of our Client Account. There is an additional one-off fee of £525 for this. Contact the Cashier to request this.
You should use the template escrow agreement in PLC and take in these riders. Note that all notices must be in the agreed form and set out as templates in the schedule to the escrow agreement.
When it comes to pay out from the escrow account, you use the normal process (see above) and attach the escrow agreement and signed escrow release letter(s) by way of client authority. The Cashier will refer the matter for approval to the Director of Operations and Compliance as a further check. To avoid disappointment, it is best to send the escrow documents at the same time or before making the payment request and he can advise if they comply with the provision of the escrow agreement. Note in particular that there is a requirement for a specimen signature. This can be a digital signature via a recognised e-signing platform. If so, the email address of the signer must be identical in the specimen and the signed release. The Cashier will add the usual bank fees to the ledger and you should bill those at appropriate intervals. If you want to avoid having to ask the client for money later, then you should take funds on account for the best estimate of the number and types of payment to be made. In the alternative, you can agree these costs will be taken from the escrow account.