Attorney Escrow Services from a California Escrow Attorney
When a deal is too unusual or too international for a standard escrow company, a client may prefer to have its own attorney hold the funds. The Law Office of Madaen holds transaction funds in its client trust account and releases them only as the signed agreement provides.
How attorney escrow works here
The firm holds funds in trust only as part of its legal representation of a client in the transaction, under a written agreement that states the release conditions and payees. California's Escrow Law licenses escrow companies; attorneys acting for a client in a bona fide attorney client relationship are treated differently, and the firm does not operate an escrow business for the public.
- Call or write to the attorney. Describe the transaction. Bahram Madaen confirms whether the firm can help and quotes the fee.
- Open your secure client account. Register, confirm your email and turn on two-step sign in.
- Complete the Client Information Sheet. The online Know Your Client questionnaire, plus identification and tax forms uploaded in the portal.
- Sign the Paymaster Agreement online. The written agreement sets out who pays, who is paid and when.
- Funds received and paid. After wire instructions are confirmed by telephone, funds arrive in the client trust account and are paid out by wire according to the signed instructions.
Transactions
- Oil and petroleum sales and commissions
- Gold, diamonds and precious metals
- Large U.S. dollar payments to several beneficiaries
- Transactions involving digital assets, settled in U.S. dollars
- Medical supply and equipment contracts
- Business and asset sales, holdbacks and commission agreements
Attorney trust account or escrow company?
| Licensed escrow company | Attorney trust account | |
|---|---|---|
| Typical use | Standard home and business sales | Custom, commodity and international transactions handled by the client's attorney |
| Who it acts for | Neutral escrow holder for both sides | The attorney's client, under a written agreement |
| Oversight | California DFPI license | State Bar of California trust account rules |
What the firm does not do
The firm's role is limited and is set out in the written agreement. The firm:
- does not guarantee that any transaction will close or that any party will perform;
- does not inspect, value or certify goods, commodities or digital assets;
- does not operate as an escrow company, bank, money transmitter or currency exchange;
- does not buy, sell, hold or transfer cryptocurrency for clients;
- does not give investment advice.
Compliance on every engagement
Federal law requires the firm and its bank to know who is sending and receiving funds. On every engagement the firm:
- verifies the identity of each individual and the owners and controlling persons of each company;
- collects IRS Form W-9 or W-8BEN / W-8BEN-E;
- screens all parties against U.S. Treasury (OFAC) sanctions lists;
- asks about the source of funds and the purpose of the transaction;
- declines or ends any engagement where documents do not match, a party will not identify itself, or the facts suggest fraud or another unlawful purpose.
Questions
Discuss your transaction with the attorney
Contact Bahram Madaen. Fees quoted per transaction. Please contact Bahram Madaen directly for a price. Every fee is set out in a written agreement before any funds are received.