Real estate transactions often involve very large sums of money moving at specific points in time, sometimes before all conditions are fully resolved. Whether the transaction relates to land, development property or investment assets, the financial exposure can be significant for buyers, sellers and developers alike.
Although property transactions are familiar, they are rarely simple. Payment obligations may sit alongside planning conditions, overage arrangements, staged completions or post-sale responsibilities that continue long after the initial transfer of ownership. In that context, how money is held can be as important as the price agreed.
Escrow accounts and third-party managed payment accounts provide a structured way to manage these complexities. They allow funds to be held independently and applied in line with agreed conditions, without altering the underlying conveyancing or development arrangements.
Payment risk in real estate commonly arises where value and timing diverge. A purchaser may commit funds before planning permission is secured, infrastructure is completed or title issues are fully resolved. Conversely, a seller may transfer an asset while relying on future payments linked to development outcomes or deferred consideration.
There is also a risk associated with long-term obligations. Overage agreements, restoration commitments or conditional payments can span many years. If funds are not properly secured, a party may be left relying on the ongoing solvency or cooperation of a counterparty long after the transaction has completed.
Additional complexity can arise where property is held through special purpose vehicles, trusts or offshore structures. In these cases, enforcing payment rights may be slower or more uncertain, making the initial structuring of funds particularly important.
Escrow is widely used in real estate where funds need to be protected against future events. A common example is overage or clawback arrangements, where money is held to secure additional payments if planning consent is obtained or development milestones are reached.
Escrow is also used as an alternative to bonds in situations such as restoration obligations or security required by landowners or planning authorities. Holding cash in escrow provides direct and reliable protection without the uncertainty of claims-based products.
In higher-value transactions, escrow may be used to hold deposits or proof-of-funds payments, particularly where sellers wish to ensure that bidders or purchasers are financially committed before taking property off the market.
Third-party managed payment accounts are used in real estate where the focus is on administering payments rather than securing future conditions. These accounts can be used to manage development costs, infrastructure contributions or professional fees from a ring-fenced pool of funds.
They are particularly useful for complex developments involving multiple consultants, contractors and suppliers. By centralising payments, developers and investors gain clearer oversight of expenditure and reduce the risk of funds being diverted to other projects.
Managed payment accounts can also provide continuity over the life of a development. If ownership structures change or advisers are replaced, the payment mechanism remains in place, ensuring that funds continue to be applied transparently and for their intended purpose.
Decommissioning Escrow is suitable for asset owners, operators and investors who are required to plan for end-of-life obligations.
It is often used by energy companies, including offshore and onshore operators, where decommissioning obligations may arise many years in the future. It is also used in industrial and infrastructure settings, such as manufacturing plants, processing facilities and large-scale installations.
Advisors commonly recommend Decommissioning Escrow where parties need to demonstrate that funds will be available in the future, without relying solely on balance sheet provisions or guarantees.
Licence to Alter Escrow is suitable for landlords, managing agents and leaseholders involved in alterations to residential or commercial property.
It is particularly relevant where works are structural, affect common parts, or involve extended programmes. It is also used where the landlord wants security but does not wish to hold funds directly.
Solicitors and managing agents often recommend escrow where neutrality is important or where the works present a higher risk to the building.
Planning & Development Escrow is suitable for developers, landowners and property investors who are subject to planning conditions or obligations.
It is also relevant for local authorities, landowners, funders and advisors who require comfort that funds will be available to meet agreed obligations.
Escrow is often used where parties want a clear, neutral alternative to bonds, guarantees or informal retention of funds.
They are suitable for the Responsible Entity and their appointed representative where one is used. It is also suitable for developers, managing agents, RTM companies and other building owners who need a clear and auditable way to manage remediation funding.
They are also useful for project teams, including the project manager, quantity surveyor, fire engineer, lead designer and lead contractor, because payment can be managed through one controlled mechanism and made to each consultant, contractor or supplier directly.
Pricing depends on the structure, value and duration of the arrangements. There is no single fixed fee, as projects and payment flows vary.
Pricing usually reflects three main elements. First, the work involved in setting up the arrangements, including compliance, onboarding and preparation of the account documentation. Second, the ongoing administration of the account while funds are held. Third, the handling of payments or releases during the life of the project.
What pricing covers is the independent holding of funds, administration of agreed payment mechanics, record-keeping, reporting, all bank fees and support throughout the project. It does not cover legal advice, contract administration or dispute resolution, which remain the responsibility of the parties and their advisors.
If something goes wrong, the account agreement provides a clear framework for dealing with it.
If there is a mistake, delay or disagreement about instructions, funds remain safely held in escrow while the issue is addressed. We follow the process set out in the account agreements and do not release funds unless and until the agreed conditions are met.
If a party has a concern about how the account is being operated, we have a formal complaints process. This allows issues to be raised, reviewed and resolved in a structured way, with escalation routes available if needed.
We are a specialist provider focused on escrow and managed payment arrangements. Escrow is not an add-on to another service. It is a core part of what we do.
Funds are held securely and separately, with infrastructure designed specifically for escrow rather than adapted from other uses. Account opening is handled efficiently, and arrangements are administered through a dedicated digital escrow and payments portal, giving authorised parties visibility and a clear audit trail.
Advisors often recommend dospay because we sit independently of the transaction, operate within a regulated framework, have a proven track record and focus on doing one thing well: Holding and administering escrow funds in a clear, neutral and predictable way.
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dospay is a trading name of DOS & Co. Ltd, a company registered in England and Wales with company number 08294966.
DOS & Co. Ltd. is registered with the Financial Conduct Authority under the Payment Services Regulations 2017 (FRN: 833374) for the provision of payment services.
All of our GBP escrow and third-party managed accounts are segregated and safeguarded at the Bank of England.
