Loan Escrow Service

Secure Payment Terms When the Deal Requires More Structure.

When a purchase agreement includes multiple payment periods, conditions, or delayed payments, escrow can help create a more secure process for both buyer and seller.

Advisor Legacy’s Loan Escrow Service helps support transactions where funds need to be held by a trusted third party and released according to the terms of the agreement.

Book a Call
Learn About Escrow Services

A Cleaner Way to Manage Conditional Payments.

An escrow is a financial arrangement where a third party holds and regulates payment of funds required for two parties involved in a given transaction.

In advisory practice transactions, escrow can be useful when a large amount of money is involved, when the final purchase price includes conditions, or when funds need to be released only after certain obligations are fulfilled.

Once the required conditions are met, the escrow agent releases the agreed-upon funds according to the terms of the escrow agreement.

Legal Support

Escrow Support From a Firm That Understands Advisory Transactions

Our partner law firm, Kotz Sangster Wysocki, P.C., has extensive experience in the financial services industry and serves as the escrow agent for our clients.

Kotz-Sangster is a business law firm concentrating on the representation of middle market companies and their business interests. Their team is highly skilled in succession planning and businesses ownership transition.

If you would like to learn more about legals services, please, contact our attorney partners.
Why Escrow Helps

Added Security for Payments That
Depend on Timing or Conditions

Escrow can help prevent confusion, reduce payment risk, and create a clear release
process for certain transaction structures.
01

Funds are held by a
neutral party

The escrow agent holds funds until the agreed conditions are met, helping both sides follow the written agreement.

02

Payment timing is documented

Escrow can define when funds are available, when they are released, and what must happen first.

03

Disputes have
a process

If there is disagreement, the escrow agent follows the terms of the escrow agreement and applicable jurisdiction.

How Escrow Works

A Clear Process for Holding and Releasing Funds

Escrow is commonly used when the buyer is using bank financing or when part of the
purchase price is subject to conditions.
Advisor Legacy Web images (9)-1
  • Agreement: All parties agree to the terms of the transaction.
  • Escrow setup: The buyer or seller initiates the escrow account.
  • Payment schedule: The buyer or bank submits payment to the escrow agent according to an approved transfer schedule.
  • Funds secured: The seller is notified when funds have been secured in escrow.
  • Ownership transfer: The seller transfers ownership of the financial advisory practice to the buyer.
  • Funds released: Escrow releases the agreed-upon funds to the seller according to the escrow agreement.
  • Remaining funds: Any remaining funds are released subject to the terms of the escrow agreement.
  • Dispute process: If a conflict arises, the escrow agent follows the agreement and applicable jurisdiction.
Cost of Service

Escrow Pricing Based on Deposit Amount

The cost of an escrow account and related services is $2,500 plus a percentage of the amount deposited. The fee is paid by the
seller upon execution of the escrow agreement.

Deposit $1M $1–$2M $2–$3M $3M+
Example $500,000 $1,500,000 $2,500,000 $3,500,000
Percentage 0.16% 0.14% 0.12% 0.10%
Asset Fee $800 $2,100 $3,000 $3,500
Base Fee $2,500 $2,500 $2,500 $2,500
Total Fee $3,300 $4,600 $5,500 $6,000

Funds are held in the escrow agent’s IOLTA account with no interest paid to either buyer or seller.

Use Escrow When the Deal Requires More Control.


If your purchase agreement includes delayed payments, conditions, or multiple release periods, Advisor Legacy can help you explore whether escrow is the right fit.

Book a Meeting