1. The beneficiary, i.e. a person or a company that receives the data when the conditions are fulfilled.
2. The depository or the so-called contributor that transfer the funds and documents to the escrow account.
3. The escrow agent that controls the fulfillment of the agreement and distributes the files and finds according to it.
The procedure of opening escrow account and creating the escrow agreement
When the escrow company receives the request from one party, the account is being created. It depends on the nature of the deal and a few other things.
First of all, there must be no conflict of interest. The compliance department must find nothing suspicious to be able to send an invoice for prepayment. After the payment, the account is ready for receiving data and documents.
At the second stage, the contributor deposits the files and data that have to be released as soon as the obligations are fulfilled. The obligations can differ and depend on the agreement as well as the type of transactions. For instance, people and companies can transfer ownership rights, real estate, etc.
Finally, after the conditions are fulfilled, the escrow agent completes the transaction by releasing the funds to the parties.
As a rule, the escrow bank account is closed after that. However, the agreement is stored as a record.