Escrow?

As some of you may be aware I'm selling the SV. I have someone who is interested and wants to pay a deposit first then the full amount slightly later when he can afford it (which is fine by me). He has suggested paying the deposit using Escrow but I've never heard of it. Anyone ever used the service???

Cheers,
Andy

[tigersaw]

An escrow is an intermediary, who will hold the goods, and not hand them over until the money is paid, when you will receive payment in full. In this case, I think what he wants to do is not pay you the deposit directly but to someone else - you can see its been handed over, but you can't get it and spend it.
Is it a large deposit? I'd be more inclined to ask for a small non refundable retainer deposit, say ?100, under the condition that the rest is paid by a certain time else the deal is void.

Touching with bargepoles springs to mind.

In other words - don't. I'm sure you could sell to someone with cash.

[Biker Biggles]

We cant be talking huge sums here for an old curvy,so why all the palava?
I bet someone wants you to ship the bike to Nigeria for "safe keeping" as well eh?Best avoided I reckon.

As the others say - just don't! Where this looks to be going is that, once the money is held in an escrow acount, a deal is said to be done...when they start to mess you around, you won't be able to withdraw either. So the conditions will come thick and fast and be linked to you dropping the price to just escape.

It's not like they are buying Suzuki plc.....it's a second hand bike!

[embee]

Two phrases to keep well clear of

Western Union

Escrow

Escrows are a good idea. They're designed to protect both the buyer and seller. The Escrow is a neutral 3rd party company. The buyer pays the money to the Escrow, who holds it until the buyer receives the goods from the seller and confirms that they are satisfactory. The Escrow then releases the money to the seller.

He's suggesting the an Escrow company holds the deposit, until such time as he can pay the full amount. This doesn't sound like a bad idea to me. I think that he's just trying to protect himself. However, if you do decide to do this, then you should research and pick the Escrow company. I've heard that some fraudulent escrow services have been set up to swindle people, though most Escrow companies are genuine. They obviously charge a small fee for their services.

So long as the Escrow company is kosher, it's a very safe way to conduct a transaction. Your only real concern is how long it will take him to come up with the full payment.

Originally Posted by andyb

As some of you may be aware I'm selling the SV. I have someone who is interested and wants to pay a deposit first then the full amount slightly later when he can afford it (which is fine by me). He has suggested paying the deposit using Escrow but I've never heard of it. Anyone ever used the service???

Cheers,
Andy

I would not touch this with a 10 foot bargepole. Even though Escrow is a real term / service - but not as far as I know used in the UK for low value moveable items like motorbikes or cars.

Scamsters love using words like Escrow because many folk have a vague idea that they are legal sounding and "safe" without knowing why or exactly how they work - and are sometimes loath to admit ignorance especially after having had things "explained" to them - (hey, who likes to admit to a stranger that they are a bit of a thicko? ).......but whether a deal is genuine or not, then the advice is if YOU do not understand it fully and are not 100% comfortable then do not go ahead. As a test I find that if you are asking something like this on the internet then it means you are not 100% comfortable.

As a practical solution, offer to hold the bike for him for FREE for a week (of course no reason why you can't use the time to line up any back up buyers!) or hold it for a fortnight in exchange for a non refundable deposit of £20. Probably never see him again

*I have used the word "You" in a general sense, not specific to OP.
** I am not a lawyer - advice on the internet is the worth the paper it is (not) written on
*** A couple of years ago I sent a cheque in the post (overseas) for around £20k for a boat that was also overseas on the basis that the title docs would later appear in the post and I would take delivery at a later date......worked ok - but perhaps not recommended

[Drew Carey]

As per what the rest have said, I would stay clear. Escrow is a good service for high value commercial deals and it is used within the Securities industry to safeguard assets etc.

The issue with low value items is that it is quite easily to setup an Escrow company and use it to scam people. So, if you do wish to have a go, make sure you pick the company, not one that he recommends.

I just think it is too risky and you could sell it quicker to an easier buyer with less hassle for you.

It's me who suggested the escrow system, mainly because I only have £400 until April (when I can afford to buy the bike outright) to spend and as the bike is so nice looking I'd like to pay a deposit on it to guarantee it, as it were. Of course, it is extra hassle and I didn't know that much about it myself, only that it's a third party, a company that keeps the money until the sale is complete. Never used any companies either.

And I'm not in Nigeria,