How it works
How an escrow unfolds at Fidens
From the first discussion to the release of funds, a process overseen by a lawyer and secured by a CARPA account.
The mechanism
A trusted third party between the parties
When a transaction requires a sum to be held safely until one or more conditions precedent are met, Maître Martin Estanove receives the funds on his CARPA account and undertakes, under an agreement, to release them only to the beneficiary and on the agreed terms.
Neither the depositing party nor the beneficiary can dispose of them unilaterally in the meantime.
The steps
The path of a transaction
Four stages, always in the same order, with a single point of contact from start to finish.
- 1The agreement
First discussion & escrow agreement
You present the transaction to the firm. The escrow agreement is provided by your advisers or drafted by the firm: it sets the amount, the term and the conditions precedent for release.
The agreement sets the escrowed amount, the term and the conditions precedent for release.
- 2The parties
Identification of the parties, bank details & KYC
The depositing party and the beneficiary are identified and their bank details collected. KYC and AML/CFT checks cover the identity of the parties and the source of funds.
Identity and source-of-funds checks in line with AML/CFT obligations.
- 3The funds
Funds held on a CARPA account
The funds are received and held on the lawyer’s CARPA account, dedicated to your matter for a defined period. Neither party can dispose of them unilaterally.
A ring-fenced sub-account, separate from any other funds, for the exclusive benefit of the matter.
- 4Completion
Release upon conditions
The funds are released to the beneficiary as soon as the agreed conditions precedent are met, on the exact terms of the agreement.
No release occurs outside the framework set by the agreement.
Legal & ethical framework
The guarantees of an escrow entrusted to a lawyer
Controlled fund handling
Every movement passes through the CARPA, which checks the origin and destination of the funds and guarantees settlements.
Professional secrecy
The lawyer is bound by professional secrecy: the information and documents in the matter are strictly confidential.
Bespoke agreement
The escrow agreement is tailored to your transaction and sets out precisely the conditions for release.
Ring-fenced funds
The sums are isolated on a dedicated sub-account, separate from any other funds, for the exclusive benefit of the matter.
AML/CFT compliance
Identity and source-of-funds checks in line with anti-money-laundering obligations.
Full traceability
Every step is time-stamped and documented, from receipt to release of the funds.
Frequently asked questions
What you need to know
What is an escrow agent?
An escrow agent is a trusted party to whom the parties entrust funds until agreed conditions are met. At Fidens, this role is performed by a lawyer, who receives and holds the funds on behalf of the parties before releasing them under the conditions precedent stipulated in the agreement.
What is the CARPA account?
The CARPA (the French bar’s fund-handling body) frames and controls all fund handling carried out by lawyers. Escrowed funds are deposited there on a sub-account dedicated to your matter, ring-fenced and traceable, under the guarantee of the Bar.
When are the funds released?
The funds are released once the conditions set out in the agreement are met: on a set date, on the occurrence of an event, or by joint agreement of the parties. No release occurs outside this framework.
Is the escrow set up by Fidens conventional?
Yes. Fidens sets up conventional escrow: it rests on the agreement of the parties, formalised in an agreement that sets the conditions for releasing the funds. It is the preferred route to secure the price of a voluntary transaction (sale, financing, settlement).
Is my data protected?
Yes. Identity and banking information is processed in line with the GDPR, ring-fenced per matter, and covered by the lawyer’s professional secrecy.
Insights
How escrow works: our in-depth analyses
The questions the parties most often put to us about the escrow mechanism, covered in depth.
All resourcesA transaction to secure?
Let’s discuss your situation
A first confidential conversation to consider an escrow suited to your situation.
Writecontact@selvesgodesque.comCall06 16 74 09 21Office77 rue Labat, 75018 Paris