ESCROW Agreements in Turkey
When two parties enter into a contract but neither party wishes to perform their obligation before the other party, this is when an escrow comes into play. Escrow is a person who offers services to guarantee the performances of both parties to one another. For example, if the buyer of an expensive goods wishes the goods to be delivered first before making the payment, the buyer can transfer the payment to the escrow who will in turn hold the payment as a guarantor and release the payment to the seller only when the goods are delivered to the buyer at the designated place of delivery.
In Turkish Law, an escrow arrangement first needs to be specified in a written escrow agreement. This contract should clearly detail the rights and the obligations of not only the parties but the escrow as well. The parties should specifically specify when the funds or goods will be transferred to the escrow and when and under which specific circumstances they will be released to the other party.
Escrow agreements usually concern commercial contracts with high price amounts, complicated legal language and detailed terms. In order to draft and sign an escrow agreement, the escrow must first diligently review the original commercial contract that the escrow agreement will be based on. Not doing the due diligence in an escrow agreement might lead to a legal dispute that the escrow agreement is supposed to avoid in the first place. This is why parties who are considering escrow services are highly recommended to hire a lawyer who is experienced in escrow services in Turkey.
Antalya Lawyer and Baris Erkan Celebi and his Antalya Law Firm offer escrow services in Turkey for all private law contracts. These services include diligently reviewing the commercial contract that the escrow agreement will be based on, assisting the negotiation of the parties and finally drafting and signing an escrow agreement.