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The Escrow Process

Typically, the escrow process for a buy and sell transaction encompasses the following steps:

  1. The contracting parties execute an escrow agreement, which is drafted in accordance with the terms of the principal agreement. An escrow account is subsequently established at a bank in Hong Kong.
  2. The buyer deposits the requisite funds into the escrow account.
  3. The escrow agent confirms receipt of the escrow funds to both contracting parties.
  4. A due diligence procedure is generally conducted between the contracting parties for the inspection of goods.
  5. The buyer provides confirmation of a favorable due diligence outcome to the seller.
  6. Upon fulfillment of any additional terms and conditions, the payment event is triggered. Both the buyer and seller then notify Sovereign to authorize the release of the funds.
  7. The transaction is completed, and Sovereign disburses the funds to the seller in accordance with the terms stipulated in the escrow agreement.