Business escrow services
Our business escrow team provides clients with skilled and timely service, helping to mitigate risk and manage regulatory requirements.
Work with our dedicated escrow specialists for neutral and efficient guidance
The escrow agreement can be an important last step in finalizing the deal. That's why we have a dedicated escrow services division with the experience and solutions to help with your transaction. We move quickly — offering responsive turnaround times for client due diligence review, standardized agreement, account opening and funding.
How escrow services can support your business
Our emphasis on serving clients with a knowledgeable, single point of contact demonstrates our commitment to partnering for a customer-focused experience. We take time to have an understanding of the facets of the transaction so you are confident in its execution.
What is an escrow?
An escrow is the legal agreement created to ensure performance or commitment between two or more parties and reduce risk by having an independent third party hold funds or other property until that performance or commitment is delivered upon, as set forth in the escrow agreement.
What elements comprise an escrow agreement?
- Reason for the agreement
- Parties to the agreement
- Duties of each party
- Duration of the escrow
- Indemnity language
- Investment parameters
Advantages of working with Regions for escrow services
Dedicated team
Work directly with an experienced escrow team who understands your transaction and provides responsive, personalized assistance every step of the way.
Streamlined operations
Reduce administrative complexity with standardized escrow documentation and an efficient onboarding process designed to facilitate timely execution.
Comprehensive trust & banking relationships
Our escrow services are backed by Regions resources and experience, providing the confidence and support needed for complex, high-value transactions.
Our escrow services team can guide you through a broad array of transaction types
In an effort to reduce risk in the case of an acquisition of a business or other asset, a portion of the purchase price may be held in escrow for a specified time period, pending the successful completion of the transaction.
With an indemnity escrow, property, securities or funds are held for the protection of a party or parties who may or may not be a party to the escrow agreement. If an event occurs that might result in a claim of indemnity, the secured party submits a claim for payment.
In a collateral deposit escrow, property, securities or funds are held for a predetermined period of time, to ensure the performance of one party’s obligation to another.
This type of transaction involves a taxpayer transferring real estate property that is held for productive use in a business or for investment for a similar like-kind property. This results in the taxpayer not recognizing a gain on the sale of the asset. Regions can serve as a qualified intermediary on these transactions.
Government entities and regulatory agencies require a client to establish an escrow account or trust account as a condition of operating within their jurisdiction. These escrow or trust accounts also establish proof of financial assurance to satisfy certain mandatory financial obligations that may be required or drawn on in the future.
A safekeeping or custodial escrow allows an independent third party to hold assets, securities, or funds in a secure account until specific terms and conditions outlined in an agreement are met.
A settlement escrow account is used in class action lawsuits to securely hold settlement funds provided by the defendant.
For mergers & acquisitions or other complex transactions, a representation and warranty escrow holds back a portion of the transaction proceeds until certain representations and warranties made by the seller are validated.
In order to raise capital, companies may sell shares or units in a business venture to investors or subscribers. These investors/subscribers deposit the purchase price of the shares or units in an escrow account to hold funds until a minimum deposit is received.
Certain state agencies, such as those regulating transportation, environmental protection and insurance require funds to be maintained in escrow as set forth in standard agreements.