It is a guarantee that allows both contract parties using a valid and useful tool to solve any kind of dispute that may arise during a negotiation.
The role is entrusted to the notary, which as an escrow agent plays a role as a guarantee in the pitch of bargaining and when any hypothesis of objective uncertainty arises.
When is the notary named as escrow agent? Some examples.
When a new property is sold, the transfer of ownership takes place before some common parts (generally green areas) are completed: part of the price will be deposited by the notary until the common parts have been finalized.
The transfer of an occupied building requires that the costs for his release be borne by the seller, so part of the price is held in the warehouse until the release of the goods.
The tax certificate is required for the transfer of the company; if not available the deposit at the notary will protect the buyer who does not want to wait.
The transfer of a company involves earning out in favor of the seller; at the notary, it has been deposited an appropriate sum to pay the surplus or that will be returned to the buyer if the target is not reached.
Use escrow (literally: deposit at guarantee) neutralizes the risk of default for financial difficulties or even the instrumental use of the debt position in order to gain negotiating benefits.
Source: Patrimonio Pubblico Italia
The Escrow Agent is a further form of guarantee for foreign investors who decide to make an investment in Italy in a company’s capital. It is also for foreign entrepreneurs who want to buy a farm or hotel or other real estate property to create a new business in Italy using Investorvisa.it services.