Escrow Agreement: Fill & Download for Free

There is no limitation on the use of escrow accounts in any particular industry. They are certainly used in the real estate industry to transfer funds between a buyer, seller, and others who are due payment under the escrow agreement; but you also see them used to safeguard funds in commercial and financial ventures -- and even software code is escrowed in the event that the vendor goes bankrupt or cannot fulfill its obligation.All you need for an escrow account is a reliable third-party fiduciary capable of safeguarding that which is escrowed.

Escrow is the process of using a neutral, third-party to facilitate a transaction.It’s used when money or papers or an item are owed to other parties and each side wants assurance they will get what is owed to them before they give the other side what is owed in return.A readily familiar example is real estate transactions:I agree to sell you my house, but I’m not going to give you the deed until you hand over the money. You, of course, don’t want to give me the money until I provide you the deed. Yikes, we’re stuck! What should we do? Hire an escrow company!You hire an escrow company by signing an agreement and paying their fee. Some banks might offer this service, too. The escrow agent will hold my deed and your money. When they have everything required from everyone, they will give you the deed and me the money. Problem solved!If drug dealing wasn’t illegal, that industry would benefit greatly from using escrow. But, then there wouldn’t be dramatic movies scenes where the drug dealer’s drugs get stolen or the buyer gets scammed of his money.

It will depend on the project.By the time your I-526 application is being processed, most projects have already moved your funds from escrow into the actual project. I say most because a few projects will hold your funds in escrow all the way up until I-526 approval.This doesn’t mean you can’t cancel the application, it just will be more difficult and take longer for the investment to be returned. The exact language on when you can voluntarily withdraw your funds are in the project’s investment documents. Some project will allow you to do so at no cost, some will have you forfeit your administration fee, and some will sit somewhere in the middle.Along with this language, they will usually include the timeframe that the funds are returned to you.For example, if the project is like industry standard and deploys the investor’s funds from escrow into the project, there may be difficulty in the project getting the liquidity to pay you back immediately. It may take them 1,2, or 3 months.If the project is one of the few and funds are still in escrow, that means there is the liquidity for the project to agree to return your funds sooner than the above model.We have built a free online resource where potential investors can compare current EB-5 projects. You can see the escrow agreements and investment documentation. There are also projects on the website that offer escrow until I-526 approval.You can check it out for free at https://eb-5investments.com