trog
New member
anybody familar with setting up one of these accounts in USA
escrow Accounts
- Thread starter trog
- Start date
Stevie_T
New member
Not in USA but just set one up in UK
trog
New member
Did u use a bank in uk, as none i talk too are awre of Escrow??
jfm
Well-known member
Escrow account means many things. What exactly do you want to do?
ashley
New member
Be careful
My friend just got skanked for €2,400 with paypal's "guaranted" escrow service
Do you think he'll see a penny?
My friend just got skanked for €2,400 with paypal's "guaranted" escrow service
Do you think he'll see a penny?
Stevie_T
New member
Okay Trog this is how it went;
I am purchasing a yacht overseas, the yacht was originally built in the UK and VAT paid. However I was warned that I may be charged VAT on the boat if I re-import her to the EU, which is my intention. The vendor was guaranteeing VAT paid and so suggested an Escrow account to hold back payment of the potential VAT amount so that after she is re-imported and all VAT problems sorted then he will get his money guaranteed. Also good for me as I dont have so much worry about being clobbered.
I have paid the deposit direct to the vendor but have also put the balance in the escrow account so that I can sail away and the vendor knows he will be paid. Part of the contract is that the boat must not be 'wanted' for contraband or other nasties. We sail the boat back to the EU together, establish her situation and when all is settled the vendor gets his cash.
Okay, now to the escrow itself. I contacted my bank and although the manager was very helpful he didn't actualy come up with much of any use for me on this.
An escrow is usually set up using a solicitor, I contacted several, only one of them was much help, the others not knowing much about them. So I used him.
The escrow account is basically to pay a third party when the terms of an agreement or contract are met. There are two ways you can approach this.
1) get a solicitor to write the contract for you and then set the account up based on this contract.
2) Write your own contract that both buyer and seller agree on
3) Have buyer and sellers solicitors sort it out between them
If you go for opton 1 be prepared to pay a couple of thousand for the contract. If you choose option 3 then it will probably cost a small fortune. We went for option 2. We wrote our own very simple contract and had one solicitor represent us both, this has kept it to a fixed fee of just £300 GB pounds.
Of course there is an element of risk in the option we took but then I am prepared to take it. Also the money earns you a small interest whilst the solicitor holds it for you.
Don't know anything about paypals 'escrow' but wouldnt think that was what you had in mind anyway and bears no relation to this.
Hope that helps.
I am purchasing a yacht overseas, the yacht was originally built in the UK and VAT paid. However I was warned that I may be charged VAT on the boat if I re-import her to the EU, which is my intention. The vendor was guaranteeing VAT paid and so suggested an Escrow account to hold back payment of the potential VAT amount so that after she is re-imported and all VAT problems sorted then he will get his money guaranteed. Also good for me as I dont have so much worry about being clobbered.
I have paid the deposit direct to the vendor but have also put the balance in the escrow account so that I can sail away and the vendor knows he will be paid. Part of the contract is that the boat must not be 'wanted' for contraband or other nasties. We sail the boat back to the EU together, establish her situation and when all is settled the vendor gets his cash.
Okay, now to the escrow itself. I contacted my bank and although the manager was very helpful he didn't actualy come up with much of any use for me on this.
An escrow is usually set up using a solicitor, I contacted several, only one of them was much help, the others not knowing much about them. So I used him.
The escrow account is basically to pay a third party when the terms of an agreement or contract are met. There are two ways you can approach this.
1) get a solicitor to write the contract for you and then set the account up based on this contract.
2) Write your own contract that both buyer and seller agree on
3) Have buyer and sellers solicitors sort it out between them
If you go for opton 1 be prepared to pay a couple of thousand for the contract. If you choose option 3 then it will probably cost a small fortune. We went for option 2. We wrote our own very simple contract and had one solicitor represent us both, this has kept it to a fixed fee of just £300 GB pounds.
Of course there is an element of risk in the option we took but then I am prepared to take it. Also the money earns you a small interest whilst the solicitor holds it for you.
Don't know anything about paypals 'escrow' but wouldnt think that was what you had in mind anyway and bears no relation to this.
Hope that helps.
trog
New member
Thanks for that advice, i have been told that some banks have escrow accounts like bank Of America, which Barclays is there alliance, in Uk but get no help from Barclays on the high St.
I think the seller is wanting a $ draft or electronic transfer, the boat will hopefully be ready for delivery to be picked up by haulage company 10th June. /forums/images/graemlins/confused.gif
I think the seller is wanting a $ draft or electronic transfer, the boat will hopefully be ready for delivery to be picked up by haulage company 10th June. /forums/images/graemlins/confused.gif
Seafort
New member
I think you will find that VAT is payable. It doesn't matter that it was paid initially.
That you are having it shipped and paying in dollars would show that the yacht was sold outside the EU and therefor incur VAT on importation.
I guess it will depend on what documentation/registration you will have.
Well thats my understanding from other threads on here. Try a search going back aways.
Good luck.
Dave.
That you are having it shipped and paying in dollars would show that the yacht was sold outside the EU and therefor incur VAT on importation.
I guess it will depend on what documentation/registration you will have.
Well thats my understanding from other threads on here. Try a search going back aways.
Good luck.
Dave.
trog
New member
Hi There , know VAt and duty will have to be paid just want safest way of transfering funds and apparently escrow is the way to go, but which escrow service do you go with
