Exchange Resources, Inc. offers holdback account services.  Many individuals and companies have a need for a third party to hold funds or documents until a subsequent event occurs and then released to the appropriate party.

Escrow companies are common clients that benefit from holdback accounts because they are able to close escrow and send funds that are awaiting further instruction without delaying their close. Common scenarios include:

·         Dispute between the parties (i.e. payment of a commission)

·         Repair work to be performed on the property

·         Money set aside for toxic waste clean up

·         Payment of taxes or assessments

·         Awaiting the outcome of pending litigation

There are many other reasons an individual or company would need a holdback account, including but not limited to:

·         Construction funding.  A contractor or lender may require that monies be kept in a separate holdback account and disbursed only when various construction requirements are met.

·         Landlord-tenant relationship.  A landlord may require a full year of rent be deposited in a third party holdback account.  The holdback account administrator then issues payment each month as designated in the mutually approved holdback agreement.

·         Divorce settlement.  Both parties may use a holdback account if a property is sold as part of a divorce and no agreement has been reached as to the allocation of the proceeds.  As neither party would want to risk losing the buyer escrow could be permitted to close and send the proceeds to the holdback account.  The proceeds would then later be disbursed upon receipt of a mutually approved instruction from the parties.

·         Investor group.  A group of investors seeking to pursue legal action may use a holdback account to ensure receipt of signed agreements and required deposit amounts from all investors prior to moving forward. 

As you can see many circumstances arise that could necessitate the use of a holdback account.  Please do not hesitate to contact us regarding your circumstances to find out if a holdback account could be beneficial for you.