The Victoria Law Group has been providing Paymaster services since 2010. In the majority of successful cases, the buyer and seller are involved in transactions that require them to place a paymaster between them to verify that the proposed transaction has taken place, and to handle their incoming and outgoing funds.
A paymaster is understood to be a neutral third party who has no understanding of the transaction and only handles the incoming commissions and ultimately, disbursing the funds accordingly. Often times, there are intermediaries involved in the transaction who have facilitated the relationship between the buyer and seller.
In order to deliver his services effectively, we charge a small fee for our services which is paid out of the commission proceeds. Usually, the transactions are very large in value.
Most of the time, a paymaster is a lawyer but there is no pre-requisite for a paymaster to be a lawyer. When there is commission based payment on contracts which deals with a huge sum of money, many of the banks in the U.S. are not set up to handle such transactions with appropriate supervision, so they remain wary of handling such large amounts of money for what they would consider “atypical” transactions.
Hence, most of the buyers and sellers of such transactions make sure to place their money in the hands of one neutral third party for disbursement. Please contact us by email if you have any further questions about engaging a paymaster.
Let us now look at the top 10 questions circling around the topic of Paymaster Services.
A Paymaster can be an attorney who acts as a neutral third party in order to receive funds from any transaction between two separate individuals or businesses. The Victoria Law Group maintains an escrow account, then disburses those funds to the seller and any authorized intermediaries involved in the transaction.
Yes, we charge either a Flat Fee or a Percentage Fee or both with a bottom and top cap for the services we provide. We charge an initial fee for the due diligence and transaction work we have to do to establish the paymaster arrangement. The Initial Fee often serves to distinguish legitimate parties from parties who have little capacity to engage our services.
A paymaster has a role of handling the funds on behalf of a group of investors or government agency. They control when and how a person or entity receives money, usually through the existence of an escrow account. The job duties of a paymaster include keeping track of payments received and owed as well as transaction paperwork completed by lawyers. This position is typically held by a licensed attorney or accountant.
One engages The Victoria Law Group Paymaster Services in the following ways:
Parties complete all transactional documents, including the Paymaster Agreement.
The Victoria Law Group Paymaster typically receives and disburses funds for individuals and corporate entities alike involved in transactions such as:
International Banking is often “hyper-regulated” that transactions involving considerable sums of money alarm many banks, even to the extent of closing client’s accounts at the very mention of large sums of incoming funds.
One other issue is that of large incoming funds that are removed from the clients account within just a few days. This will often cause a ‘red flag; alarm with the bank’s compliance department, in most cases, blocking the client’s funds until questions are answered. This can prove very frustrating for the client and expensive.
Hence, paymaster services provided by an credentialed and established attorney cater to such concerns.
The normal case scenario takes about 24 hours to complete a transaction of a paymaster service once all of the paperwork and pre-transaction paperwork and due diligence has been performed.
A Paymaster Agreement tends to include all parties which is the Sender, Receiver and Intermediaries. Intermediaries expect to safeguard their commissions by a Paymaster Agreement. The main contract for the transaction, however, must be closed between Sender and Receiver of the funds. It only makes sense to have a Paymaster Agreement when both the receiver and sender are ready to be involved in the transaction and in making/forming of the Agreement.
When you look at international money laundering laws, paymasters tend to be obligated to carry out due diligence for each transaction on behalf of the banks, money laundering authorities and the tax authorities for the sender and receiver in the transaction. There is absolutely no way to execute or accept a mandate which is not covered by due diligence. As Paymasters, they always understand the procedures and make sure to provide a safe and legal service.
A Paymaster Agreement must comply with all regulations regarding Anti-Money Laundering Policy, Client Care and KYC information, appropriate Party identity checks.
The Victoria Law Group consists of competent and dependable attorneys and legal professionals who are highly knowledgeable in the field of real estate law. Our team of legal professionals has assisted several residential and commercial clients with various legal matters associated with real estate including but not limited to the preparation and revision of contracts, acquisition of properties, refinances, foreclosures, deeds-in-lieu of foreclosure, short sales, landlord tenant disputes, eminent domain, leasing as well as enforcements and evictions.
There is no case too complex for The Victoria Law Group to handle. We understand Miami Real Estate; we were built for Miami Real Estate. We know how important the real estate industry is to the global economy and we work hard to provide our clients with the best solution for all their legal needs.
Representation in our Real Estate Practice Area includes sales, leases, title insurance and other transactions in addition to structuring complex sale and acquisition agreements and negotiating and closing complex mortgage financing on behalf of lenders and developers.