
Common Use Cases for Escrow in Financing:
● Real Estate Transactions: Holding earnest money deposits, down payments, and final settlement funds until all conditions of the sale (inspections, title search, loan approval) are met.
● Mergers & Acquisitions (M&A): Holding a portion of the purchase price in escrow to cover post-closing adjustments or indemnification claims.
● Project Finance & Construction Loans: Disbursing funds in tranches as construction milestones are completed and verified.
● International Trade: Securing payments for goods once shipping and delivery are confirmed.
● Venture Capital & Private Equity Investments: Holding investment funds until specific performance targets or closing conditions are met by the startup or target company.
● Online Transactions & E-commerce: Protecting buyers and sellers in high-value online purchases of goods or services.
● Intellectual Property Sales: Holding funds until IP rights are successfully transferred.
● Capital Raising & Crowdfunding: Holding investor funds until a minimum funding target is reached.
● Litigation Settlements: Holding settlement funds until all parties sign release