A secure payment mechanism in which the funds for a transaction are held in a special lawyers’ trust account and released only once the agreed conditions have been met.
Escrow is a mechanism well established in international practice, in which an independent and impartial third party — the escrow agent — undertakes to hold funds until pre-agreed conditions are met. In our firm this role is performed by the lawyers.
The buyer is assured that the funds will be transferred to the seller only against the actual performance of the transaction. The seller is assured that the money is already available and set aside. This reduces the risk of non-performance and fraud to a minimum.
As lawyers, we act as a trusted and legally bound third party that guarantees strict compliance with the agreed conditions and the protection of each party’s interests.
The escrow agent is the independent and impartial third party whom the buyer and the seller trust to hold the transaction funds and to hand them over to the appropriate party only once the agreed conditions have been met. The agent does not represent the interest of either party — its sole task is to guarantee the fair performance of what has been agreed.
At the law firm Filipov & Beleva, the role of escrow agent is performed by the lawyers. Unlike an ordinary commercial intermediary, a lawyer is bound by the Bar Act, by strict rules of professional ethics and by attorney confidentiality, while the funds are held in a special trust account that cannot be seized. This gives the parties the highest level of legal security.
Stands outside the parties’ interests and watches solely over the fulfilment of the agreed conditions — without favouring either of them.
The role is performed by lawyers — with professional liability, ethics and confidentiality, rather than by an ordinary intermediary.
Keeps the money in a protected trust account and releases or returns it only when the agreed conditions occur.
The lawyers of Filipov & Beleva maintain a special client (trust) account within the meaning of the Bulgarian Bar Act. The funds deposited in it are not part of the lawyers’ assets and are held entirely separately from their own accounts.
The legal framework of the trust (client) account is established in the Bulgarian Bar Act. The specific terms of each transaction are agreed individually in a written escrow agreement.
We draw up an escrow agreement that clearly sets out the conditions, deadlines and grounds for releasing the funds.
The buyer deposits the agreed amount into the lawyers’ trust account, where it is held securely.
We monitor the occurrence of the conditions — for example the registration of a notarial deed, the transfer of shares or delivery.
The funds are transferred to the seller or returned to the buyer — precisely and solely in accordance with the agreement.
Purchase and sale of property, where payment is tied to the registration of the notarial deed and the transfer of ownership.
Acquisition of company shares, stock and entire businesses, including mergers and acquisitions.
International and domestic commercial transactions with deferred, staged or conditional payment between the parties.
Investment and construction projects with staged financing tied to the completion of specific works.
Assignment of receivables and settlement of debts where a neutral custodian of the funds is required.
Transfer of rights, licences and know-how where payment depends on the handover of the assets.
As fiduciary intermediaries, the lawyers have no interest of their own in the outcome of the transaction and are answerable before the law and professional standards for the proper performance of the commitments undertaken.
It is a special client account in which lawyers hold funds of a client or a third party until pre-agreed conditions occur. The funds are spent only for the purposes for which they were provided and are kept separately from the lawyers’ own assets.
The funds in the trust account are not part of the lawyers’ assets and, by virtue of the Bar Act, are not subject to enforcement or seizure for their obligations. This is one of the fundamental guarantees of the transaction’s security.
The funds are released only after the conditions set out in the escrow agreement have been met — for example the registration of a notarial deed, the transfer of shares or confirmed delivery. In the event of non-performance, they are returned to the depositor.
The fee is determined individually according to the type, complexity and value of the specific transaction. Contact us for a proposal tailored to your case.
At Filipov & Beleva, the role of escrow agent is performed by the lawyers. Unlike an ordinary commercial intermediary, a lawyer is bound by the Bar Act, by professional ethics and by attorney confidentiality, while the funds are held in a trust account that cannot be seized. This gives the parties additional legal security.
A bank guarantee and a letter of credit are banking products with relatively standardised terms, fees and procedures. Escrow through a lawyer is more flexible — the terms are fully tailored to the specific transaction, and the funds are managed by a person with legal responsibility who also oversees the legal side of performance, not merely the formal presentation of documents.
If the agreed conditions do not occur within the envisaged period, the funds are returned to the depositor (usually the buyer) in accordance with the escrow agreement. While the transaction is pending, neither party can dispose of the funds unilaterally — this is the essence of the protection the escrow mechanism provides.
The conditions are agreed in advance and set out clearly and exhaustively in the written escrow agreement — what documents or events prove performance (for example a registered notarial deed, the registration of a share transfer, a delivery protocol), within what deadline and how the payment is made. The more specific the conditions, the more smoothly the transaction proceeds.
Yes. The escrow mechanism is particularly useful in transactions with a foreign element, where the parties are in different countries and need a neutral intermediary to guarantee the simultaneous performance of the mutual obligations. It reduces the risk associated with distance, different legal systems and the absence of prior dealings between the parties.
Contact us for a consultation. We will analyse the specific transaction, draw up an escrow agreement tailored to your needs and provide the trust account for the case. From that point on, the funds are held securely until what has been agreed is performed.
Contact us to discuss how the escrow service can protect your specific transaction.
