The process is simple: the parties agree on the terms of the transaction, the money is deposited with a regulated entity, and the funds are released once the requirements set out in the contract have been met.
EscrowSpain handles the contractual structuring, coordinates the transaction, and manages the instructions for the release of funds, in accordance with the agreed-upon terms.
1. Prepare your escrow agreement
Click the “Formalize contract” button and complete the form with the details of the transaction:
You may also select optional additional clauses to tailor the contract to the specifics of your transaction.
Based on this information, our system will automatically generate an escrow contract in PDF format, which you can review before signing.
2. The parties sign electronically
Once the contract has been reviewed, the parties may sign it electronically using our digital signature system.
The document will outline the obligations of each party, the terms for the deposit and release of funds, the applicable timeframes, and the procedure for resolving any potential issues.
Neither party should deposit any funds until they have received the relevant instructions and completed the required verifications.
3. The money is deposited with a regulated entity
Once the contract has been formalized and the necessary identification and verification procedures have been completed, the buyer will receive instructions for making the deposit.
The funds will be received and held by a duly authorized financial institution or payment service provider, selected based on the specific characteristics of the transaction.
EscrowSpain manages and coordinates the contractual process, but it does not need to receive the funds into its own accounts.
The relevant institution will apply its own security, identification, and fund-safeguarding procedures, in accordance with applicable regulations and terms.
The seller may receive confirmation of the deposit under the terms stipulated in the contract, such that
4. The operation is performed
Once the deposit is confirmed, the seller delivers the good, provides the service, or fulfills the agreed-upon obligation.
The buyer has the period specified in the contract to verify that the agreed-upon conditions have been met.
Depending on the nature of the transaction, fulfillment may be evidenced by delivery documents, certificates, formal records, notices of conformity, or other means of verification stipulated in the contract.
It is also possible to arrange partial payments based on milestones, whereby funds are released as various phases of a project or service are completed, provided that the escrow provider supports this arrangement.
5. The money is released
Once the agreed-upon conditions are met and their fulfillment has been verified through the established procedure, the release of the funds to the beneficiary will be processed.
EscrowSpain will coordinate the necessary instructions with the entity holding the deposit.
Payment will be made in accordance with the escrow agreement and the procedures of the financial or payment institution.
If the transaction is not completed, the funds may be returned or distributed in accordance with the contractual terms and any validly authorized instructions.
6. What happens if a dispute arises?
One of the key guarantees provided by EscrowSpain is that, from the outset, all parties are aware of how any disagreement regarding the fulfillment of the transaction will be handled.
The escrow agent will review the claims and evidence submitted by the parties and, in accordance with the authority granted by the contract, will decide on the disposition of the deposited funds.
If the buyer or the seller believes that the other party has failed to fulfill their obligations, they may submit a claim within the timeframe established in the contract.
The claim must describe the facts and be accompanied by any available evidence.
Contracts, invoices, photographs, videos, transport documentation, certificates, emails, WhatsApp conversations, and any other form of evidence admissible under the law may be submitted.
Suspension of payment
Upon receipt of a valid claim submitted within the established timeframe, EscrowSpain will initiate the contractual dispute resolution procedure and request that the custodian entity suspend the release of the funds in question.
The suspension will be carried out in accordance with the contractual and operational terms of the entity holding the deposit.
Hearing of both parties
EscrowSpain will forward the claim to the other party, granting them a period to submit their own arguments and evidence.
Both parties will have the opportunity to review and respond to the relevant arguments before a decision is reached.
Decision by the escrow agent
After reviewing the documentation, the escrow agent will issue a reasoned decision regarding compliance with the agreed-upon conditions and the contractual disposition of the deposit.
The decision may, as appropriate, determine:
✔ The full or partial release of the funds to the seller.
✔ The full or partial return of the funds to the buyer.
…partial [refund] to the buyer.
✔Distribution of the deposit between both parties, when permitted by the contract.
✔Maintaining the suspension [of the funds] when it is not possible to validly reach a decision regarding their disbursement.
EscrowSpain will communicate its decision to the parties and process the corresponding instructions with the custodian entity, in accordance with the contract and the terms and conditions of said entity.
Right to seek recourse in the courts
The intervention of the escrow agent constitutes a contractual procedure for determining the disposition of funds and does not replace the judicial court system.
The parties retain their legal right to pursue judicial action to challenge the decision or assert their claims.
The escrow procedure does not constitute arbitration, unless the parties have expressly agreed to a valid arbitration agreement.
Our objective is to provide an efficient, documented, and impartial resolution process that allows for the management of disputes without the initial need for litigation.