[thelist] Escrow Services

Hershel Robinson hershel at galleryrobinson.com
Wed Jan 10 13:36:30 CST 2007

I am in discussions with a new client about a project he has. He says 
that he began this project with another party and provided them with a 
down payment, and they then disappeared. He is not extremely wary of 
dealing with another situation of the sort.

I also am not prepared to begin without some concrete indication that he 
is able to pay. He therefore has suggested that we setup an escrow 
situation. My lawyer said that he could provide such a service, but his 
fees are 5% of the funds, from EACH party, which is quite high.

My US bank does not provide such a service, so he says that he could 
provide a Letter of Credit from his bank in Ireland, which include the 
condition that the bank releases the funds to me when the work has been 
done. I am a bit concerned about this arrangement.

I think I will seek out another lawyer who can handle this for a smaller 
fee, but I also wanted to ask if anyone has ever had such a situation, 
and how did you handle it?

If what he says is true, then I am not surprised that he is being very 
careful with his money, so that aspect is not worrisome. I simply am 
*always* very careful with my time, and try not to invest it unless I am 
fairly certain that I will be paid in the end. :)


Web Site Construction by Gallery Robinson

More information about the thelist mailing list