Escrow
Escrow account
A special account where money is held until the terms of a deal are met: the buyer deposits the money, the seller transfers ownership, then the money is released to the seller. It protects both sides. Used when buying property under a Golden Visa.
- What it is
- An account in which money is frozen until the conditions of a deal are met
- Where it applies
- Buying property for a Golden Visa, contributions to citizenship programmes
- Who manages it
- An independent escrow agent (a bank or a licensed firm)
- When the money is released
- Only once conditions set in advance have been met
- Can you prepare
- Yes: set out clear conditions for releasing the funds in advance
In plain words
Escrow is a special account in which money is frozen until the conditions of a deal are met. Put simply: the buyer does not pay the seller directly but places the money in a neutral account; the money goes to the seller only when they have performed their part.
The arrangement protects both parties. The buyer is sure they will not hand over money for nothing, and the seller can see that the funds are already reserved and will not disappear. The account is managed by an independent escrow agent (usually a bank or a licensed firm), which releases the money strictly according to the agreed conditions. In investment migration escrow is used when buying property for a Golden Visa and for contributions to citizenship programmes — the money is often held in escrow until the application is approved.
It is an important safeguard in deals worth hundreds of thousands of euros between parties from different countries who do not know each other. The conditions for releasing the money are set out in advance, and the agent cannot depart from them.
Where escrow is used
How escrow works
- Frozen in the account
- Not paid directly to the seller
- Reserved
- An independent intermediary
- A bank or licensed firm
- Acts on the conditions
- Set out in advance
- Registration of ownership
- Or approval of the application
- The buyer does not lose the money
- The seller sees the reserve
- Refund if the deal fails
How a deal goes through escrow
- 01Set out the release conditions
- 02The buyer pays into the account
- 03The seller performs their part
- 04The agent checks the conditions
- 05The money is released
What you need to know
- Money in escrow is frozen until the conditions are met
- It is managed by an independent agent, not the seller
- The agent cannot release the money early
- If the deal falls through, the money returns to the buyer
- In immigration the contribution is often held in escrow until the application is approved
Common mistakes
- Paying the seller directly, bypassing escrow
- Not setting out clear conditions for releasing the funds
- Agreeing to the other side’s “own” agent without checking
- Sending money before ownership is registered
- Not providing for a refund if the deal falls through
What this means for a BRIDGES client
BRIDGES GLOBAL makes sure your money in a deal goes through escrow with clearly set-out release conditions, and checks that the funds will go to the seller or the fund only once your part — ownership or approval of the application — has actually been completed.
Frequently asked questions
01 /Who manages the money in an escrow account?
An independent escrow agent — usually a bank or a licensed firm. It releases the money strictly according to conditions set out in advance and cannot hand it over early.
02 /Will the money be returned if the deal falls through?
Yes, if the escrow conditions provide for it. That is exactly the protection the account exists for: until the conditions are met, the money remains yours.
03 /Why use escrow in citizenship programmes?
So that the contribution or the payment for property does not go out too early: the money is held in escrow until the application is approved, and on refusal it is easier to get back than to recover from the recipient.
04 /How much does escrow cost?
Usually it is the agent’s fee — a small percentage or a fixed charge for supporting the deal. It is not comparable with the value of the deal itself and is added to the budget as a separate line.
05 /Can an escrow agent be trusted?
Yes, if it is a licensed bank or a firm with a reputation. The agent acts strictly under the contract and cannot depart from the agreed release conditions.
06 /Who sets the conditions for releasing the money?
The parties to the deal, in advance, in the escrow agreement. We make sure the conditions protect you specifically: the money goes out only once your part has actually been completed.
See also
Read next
This material has undergone editorial review by BRIDGES.
Complete the deal safely?
We will make sure your money goes through escrow with clear release conditions and reaches the seller only once your part has been completed.