What is an Eskro Agent?
Eskro is a legal agreement in which an item (generally in the form of money , but can also be any other object) is stored by a third party. In banking there is a term called an escrow account (temporary deposit account), this account is used to store funds or money until the terms in the business agreement can be fulfilled as a whole. The party who holds this account is called an escrow agent .
Function of an Eskro Agent
The Eskro agent certainly functions as a trustee, where he will give an achievement to a beneficiary . The eskro agent is also obliged to maintain and secure documents, shares or other valuable things from interference from other parties, to later be given to the beneficiary in accordance with what was instructed in the escrow instruction .
In principle eskro agents do not include legal advice services, or mediation in negotiations between parties who enter into transactions. However, eskro agents emphasize aspects of comfort, protection, and confidentiality.
Eskro Service Provider
Escrow services can be provided by individuals ( individual escrow ) or by legal entities ( escrow companies ). In addition, eskro services can also be provided by banks . Various commercial banks sometimes also provide eskro services as part of custody services that are part of trust activities. In this case, the bank can become an eskro agent in accepting cash deposits, guarantees , or documents for the benefit of one or several parties.
The Responsibilities of Eskro Agents
Eskro agents exist because of an eskro agreement that is entered into between the parties that will enter a transaction. Therefore, the ESRO agent is responsible to all parties involved. The following is the scope of responsibility of the ESRO agent:
- Obliged to strictly carry out the tasks in accordance with the description in the detailed eskro instructions to avoid misinterpretation.
- Obliged to comply with all the conditions set out in the eskro instruction, if there is a misunderstanding or different interpretations that cannot be resolved by deliberation, the eskro agent can submit the dispute to the court to get a decision.
- If all the conditions listed in the ESRO instruction have been fulfilled, the ESRO agent must submit all documents, securities, goods and / or money to the rightful person ( closing the escrow).