Holdback Accounts

Many individuals and companies have approached us over the years seeking a company where funds or documents can be deposited and held until a subsequent event occurs and then released to the appropriate party. Exchange Resources, Inc. provides such a service.

Escrow companies especially appreciate this service in situations where an escrow closes and certain sums of money are not released awaiting further instructions from the parties as to when and how these funds will be disbursed. This generally happens in the following situations:

• A dispute between the parties, perhaps payment of a commission.

• Repair work to be performed on the property.

• Money set aside for toxic waste clean up.

• The payment of taxes or assessments.

• The outcome of pending litigation.

There are many other reasons why an escrow company might need this type of holdback account. Usually escrow companies typically want to immediately close out their files and resist holding their files open for these situations.

We also hold documents for clients where they need a safe and secure place to house such items. These holdback accounts are also perfect for construction funding where a contractor or lender requires that monies are kept in a separate account and disbursed when the various construction phases have been completed.