ALL YOU NEED TO KNOW ABOUT PAYMASTER AND ESCROW ATTORNEY/AGENT IN NIGERIA.
Some transactions are simply too large to handle with checks or other conventional means. Escrow services handled through a lawyer paymaster reduce the risks involved with transferring large sums.
CHAMAN LAW FIRM offers Paymaster and Escrow services to many clients, both domestic and foreign. Various transactions involving such areas as real estate transactions as well as in various commodities, such as note transactions, oil and gas transactions, jet fuel, gold and diamond transactions, Sale of Precious Metals, Financial Instruments Capital Market/ Private Equity Transactions, Agricultural Transactions, Large Investment Transfers etc. All such transactions must be compliant with the federal and State authorities in Nigeria. We assist and work with such clients to ensure prompt payment of their fees within the guidelines of governmental authorities and regulations.
WHAT IS A PAYMASTER AND WHAT SERVICES DO THEY PROVIDE?
A Paymaster Attorney acts as a neutral third party to receive funds from any transaction between two separate individuals or businesses. The Paymaster maintains an escrow account, then disburses those funds to the seller. After taking a small commission as payment for his services the paymaster reconciles the escrow account and fills out the necessary IRS paperwork.
Their responsibilities are to:
– Receive funds from the buyer
– Maintain funds in escrow
– Disburse funds to the seller
– Handle Tax-related paperwork All this is done in strict compliance with federal regulations.
As such, it’s advantageous to opt for our attorneys to act as paymaster in your transaction since we’re intimately familiar with the codes, laws, regulations, and best practices involved in these kinds of exchanges. Paperwork must include the following for all parties seeking to employ Chaman Law Firm as their paymaster and escrow provider:
1. A copy of valid ID, Driver’s license and/or Passport of each parties.
2. Evidence of payment of Tax (IRS and FIRS).
3. Copy of all transactional documents, including payment agreement.
From there, the transaction continues in accordance with the purchase agreement. As your paymaster, we’re not party to the transaction itself—our job is simply to check with the escrow/Trust account to determine when the funds are transferred. Once they are, we’ll disburse funds per the purchase agreement. All the while, we’ll keep the identities of each party in the transaction strictly confidential. In addition, funds are typically handled through an Attorney’s Trust Account.
Note: Payments and disbursements can only be made in the form of Federal wire transfers of SWIFTs and Bank Transfer. Cash, money orders or bank cheques are not permitted.
WHAT TYPE OF TRANSACTIONS DO WE HANDLE UNDER PAYMASTER SERVICES?
Paymasters are usually used in transactions which involve large sums of money. For example, the transfer of large quantities of various financial instruments and commodities like Bank Guarantees, oil, gold or steel typically involve millions of dollars. The Paymaster’s services can be used to facilitate the payments and disbursement of funds. Placing the funds in escrow with a neutral and trustworthy third party reduces the risk to both buyers and sellers in these transactions. It assures the seller that sufficient funds are available for payment, and it allows the buyer to receive title to the goods in question. With our considerable experience in real estate, commodities trading, and similar transactions, we at Chaman Law Firm are well equipped to provide the utmost security when it comes to holding and transferring funds.
DOES A PAYMASTER HAVE TO BE AN ATTORNEY?
Paymasters do not have to be attorneys. However, attorneys often serve in the role of a Paymaster because they are able to use Attorney’s Trust Accounts (also known as IOLTA accounts, which are used for short term escrow transactions). As a licensed attorney, the Paymaster is subject to heavy penalties and stands to be disbarred if any funds are misappropriated. And the Paymaster may not provide legal services for any of the Paymaster clients, since it is considered to be a conflict of interest.
WHAT TO EXPECT WHEN USING PAYMASTER SERVICES.
The Paymaster is not party to the transaction, and does not know the exact time that it will close. Part of his job is to check periodically with the escrow account to ensure that the payment has been transferred in, then to disburse the funds as per his directions. Nor is the Paymaster allowed to disclose the identities of the parties to the transaction. Paymaster services facilitate the transfer of commodities and financial instruments without the inconvenience that can arise through using Letters of Credit. No credit scores or bank references are required of either party. New companies with no established credit history can trade freely.
If you have a potential Paymaster and escrow service in Nigeria and wish to employ Chaman Law Firm for your legal services, please download and fill out our Paymaster client information sheet. Once you have completed the Paymaster documents please mail to chamanlawfirm@gmail.com.
