Securing your most prized possessions: The role of escrow in yacht and art transactions
For high-net-worth individuals, a collection often extends beyond conventional assets to include masterpieces of art and luxurious yachts. The acquisition process for these items presents various risks. Given their substantial value and the complexity of related legal frameworks, transactions involving yachts and fine art commonly utilise escrow services. An independent third-party escrow agent serves as a neutral party, ensuring protection for both the buyer's funds and the seller's asset until all contractual conditions are satisfied.
How Escrow operates for high-value assets
The escrow process introduces an essential layer of security and verification, surpassing the protections offered by conventional payment methods. In transactions involving assets such as yachts or fine art, this process typically adheres to a structured sequence of steps.
Establishing the agreement: The buyer and seller define the sale’s terms within a formal contract, detailing the purchase price, special conditions, and any required inspection or survey periods. Both parties then appoint a specialised escrow agent to oversee the transaction.
Funding the escrow account: The buyer deposits the entire purchase amount into a dedicated escrow account. The escrow agent confirms receipt of these funds, providing assurance to the seller regarding the buyer’s financial commitment.
Depositing documentation and assets: The seller submits all relevant documentation, including title deeds, registration certificates, and survey reports, to the escrow agent.
Verification and due diligence: During this stage, the buyer completes all necessary checks. The buyer of the yacht or art piece can inspect the goods before confirming that the conditions of the sales are met.
Releasing funds and assets: Once all stipulated conditions are met, the buyer authorises the escrow agent to finalise the transaction. The agent disburses the funds to the seller and delivers the verified documentation and asset to the buyer. Should disputes arise, the escrow agent may mediate or retain the funds pending resolution, thereby minimising the risk of costly litigation.
Escrow arrangements deliver considerable benefits to both buyers and sellers in luxury markets, effectively reducing risks and fostering mutual trust.
Selecting an appropriate escrow provider
Owing to the complexities inherent in cross-border transactions and the handling of unique, high-value items, choosing a suitably qualified escrow agent is essential.
By engaging a specialised escrow service, parties involved in high-value asset transactions can proceed with confidence, knowing their interests are protected through a secure and transparent process.
How can Ocorian help?
Ocorian’s escrow solutions encompass a comprehensive range of offerings, including cash and physical assets, and we ensure operational excellence at every step of the process – from opening the bank account to managing documents and releasing assets.
We are an international, independent premier escrow agent with expertise in a wide range of transactions, from M&A and real estate to gold acquisitions. We pride ourselves on our dedicated and highly responsive escrow teams located in multiple locations, all focused on speed of execution.
We also support private clients with our luxury asset administration services. Ocorian’s multi-disciplinary teams—comprising lawyers, accountants, tax advisors, and real estate experts—deliver seamless administration and governance across jurisdictions. Whether assets are held for personal enjoyment or as part of a broader investment strategy, Ocorian ensures they remain compliant, well-maintained, and optimally structured for succession and tax efficiency. From crew management for yachts to insurance and storage for classic cars, Ocorian acts as a central hub coordinating specialist providers to ensure assets are kept in optimal physical, legal, and financial standing.