Solicitor’s Escrow: Why It Is Essential
How an escrow arrangement protects both buyer and seller, and how it differs from notarial or bank escrow.
How Escrow Works
The buyer deposits the purchase price into the solicitor's designated escrow account. The funds are only released to the seller once the buyer has been duly registered as the new owner in the Land Registry.
Comparison with Notarial and Bank Escrow
Solicitor escrow is typically the fastest and most flexible option. Notarial escrow offers a comparable level of security, whereas bank escrow tends to be more expensive and takes longer to process.
Insurance and Safeguards
The solicitor is fully liable for managing the funds and must carry mandatory professional indemnity insurance. Furthermore, money held in the escrow account is ring-fenced and does not form part of the solicitor's estate or personal assets.