PrimaryMarkets Escrow Services
PrimaryMarkets Escrow facilitates the flow of sale proceeds from Buyers to Sellers.
By utilising PrimaryMarkets Escrow funds from a Buyer will be held in escrow with one of the largest ASX listed independent
and diversified financial services group (market cap >A$2B) (Escrow Agent) in a bank account with either ANZ or Westpac.
The funds will not be released from escrow until BOTH the Seller and the Buyer have confirmed to the Escrow Agent that they wish to proceed to
completion of the transaction and that the funds may be disbursed by the Escrow Agent as directed by the Seller.
The fee for this PrimaryMarkets Escrow service (which is nominal) is paid on completion from the Sale Consideration.
To be clear, PrimaryMarkets never touches or controls these escrow funds rather BOTH the Buyer and the Seller each retain full
control and ownership at all relevant times.
What are the advantages of PrimaryMarkets Escrow?
PrimaryMarkets Escrow is more efficient and effective for both Buyer and Seller and should expedite transaction completion.
PrimaryMarkets believes its Escrow Service platform is “best practice” for the provision of escrow services whilst
at the same time protecting both Buyer and Seller.
FAQs
What is escrow?
Escrow is a contractual arrangement where a third party receives, and then disburses funds on behalf of two other parties subject to certain
conditions.
Who is the Escrow Agent?
The Escrow Agent is one of the largest ASX listed independent and diversified financial services group with a market capitalisation in excess
of A$2B and a leading provider of corporate trustee services both within Australia as well as globally.
The Escrow Agent has a highly regarded expertise in legal, accounting and funds management.
AML and KYC Requirements
There is a statutory requirement to collect and verify information on all users of PrimaryMarkets Escrow in order to comply
with Anti-Money Laundering and Counter-Terrorism Financing legislation (AML) as well as Know Your Client (KYC).
Thus, in accordance with best practice and as required for all similar escrow services, the use of the PrimaryMarkets Escrow requires both the Seller and the Buyer to satisfy all AML and KYC obligations. All accounts undergo a simple but robust identification
check to confirm your identity as an individual or company.
PrimaryMarkets Escrow has a fully digital process for AML and KYC on-boarding of both Seller and Buyer which is simple to
navigate and should take less than a couple of minutes to complete.
These processes target fraud and provide comfort of the bona fides and legitimacy of the counterparty Buyer and Seller.
Completion of a transaction using PrimaryMarkets Escrow?
Once the transaction funds have been paid by the Seller into PrimaryMarkets Escrow the money remains secured by the Escrow Agent and will not
be released by the Escrow Agent until:
- The Buyer notifies the Escrow Agent that it is satisfied that it has received all transfer documentation and other actions have been completed
and that the Buyer agrees to pay out of the Escrow Account the Purchase Consideration; AND
- The Seller notifies the Escrow Agent that it is wishes to complete the sale transaction and is ready to receive the Sale Consideration
into the Seller’s pre-nominated bank account.
Simplistically, no money changes hands until both Buyer and Seller have confirmed the transaction is ready for completion.
What if the other party will not approve the release of escrow funds?
The escrow funds should not be deposited until such time as both Seller and Buyer are each ready, willing and able to formally exchange all
transfer documentation in order to complete the proposed transaction.
The Buyer and Seller must both agree before any funds are sent to the Seller or Buyer. Neither party can simply “withdraw” the money. Sellers
cannot access funds without the approval of the Buyer. Likewise, Buyers cannot withdraw the funds without the action first being proposed
by the Seller.
Disputes between Buyer and Seller in regard to escrowed funds
It is in the utmost interest of both parties to resolve any disputes to access the escrow funds. In the event that a dispute cannot be resolved
after 10 days or more from the initial request to release funds the dispute may be forwarded to an appropriate court or tribunal. The Escrow
Agent will then release the funds as directed by the court or tribunal. All parties involved in the Escrow Service are entitled under the
Escrow Deed to claim legal costs from the funds held in escrow
to the extent awarded by the court or tribunal.
Does PrimaryMarkets touch or control the Escrow Account or Escrow funds?
PrimaryMarkets never touches or controls the escrow funds. BOTH the Buyer and the Seller each retain full control and ownership
at all relevant times. PrimaryMarkets is not a party to the actual transaction (nor does PrimaryMarkets make any recommendation or representation)
but merely PrimaryMarkets assists both Seller and Buyer with the practicalities of the transaction.
Who holds the money?
Escrow monies are held by the Escrow Agent and when a release request is approved by both Seller and Buyer the Escrow Agent will make the payment
directly to the appropriate party or parties.
Are escrow funds segregated?
Yes. All funds in escrow are kept in segregated escrow accounts under the control of the Escrow Agent.
How do I make payments into PrimaryMarkets Escrow?
The Buyer can make payments into PrimaryMarkets Escrow via bank transfer or BPAY. Please note that PrimaryMarkets Escrow does
not accept cash, cash deposits or cheques.
Access PrimaryMarkets Escrow from anywhere.
Each Buyer and Seller can access their respective Escrow Accounts on their smart phones, iPads, other devices and computer. Complete transactions
from anywhere.
What are the fees for using PrimaryMarkets Escrow?
The fee payable by both Buyer and Seller to PrimaryMarkets in respect of all parties providing the PrimaryMarkets Escrow Service is a nominal amount which is agreed as between PrimaryMarkets on the one part and the respective Buyer and Seller on the other.
From this fee, PrimaryMarkets pays all fees to the Escrow Agent plus bank charges for using the escrow facility.
Secure data storage
All Buyer and Seller data is housed in ASIO T4 and PCI DSS compliant facilities in Australia in compliance with the State Records Act (NSW)
1998.
Are Escrowed funds invested in the stock market?
All escrow funds are deposited in an at-call bank account with either ANZ or Westpac.
Australian Licences to operate an Escrow Service
All parties dealing with the Escrow Service hold all necessary Australian Financial Services Licence (AFSL) and are authorised independent
remittance dealers registered with AUSTRAC.
Still have more Questions?
- Chat with us online by clicking the “Leave a Message” tab on the bottom right
- Give us a call on +61 2 9993 4475
- Drop us a line at info@primarymarkets.com