What is Paymaster? In today’s article, Bianchi Fasani Law will explain what a Paymaster is and what services Paymasters provide.
A Paymaster is a person or entity who acts as a neutral third party in transactions between two individuals, entities, businesses, etc.
The Paymaster ensures due diligence, ensures the transaction is legitimate, and makes sure to carry out the transaction safely and effectively.
A Paymaster is often an attorney because attorneys have the ability to use an Attorney Trust Account, also known as “IOLTA Trust Account.”
These accounts are used mostly for short-term escrow transactions.
A IOLTA Trust Account provides an extra level of security because it is carefully monitored by the state bar in which the attorney is licensed.
As an attorney, the Paymaster is subject to large penalties and could even be disbarred if funds
How does the process work?
An individual contacts the Paymaster and the two parties enter into a transaction.
The Paymaster will review the agreement to understand who is paying, who is receiving the payment, what they are paying/getting paid for, and when payment should be complete.
The buyer will wire money into the IOLTA Trust Account, and then the Paymaster will disburse the funds based on the agreement and any other instructions by the parties.
A Paymaster is beneficial because it provides a trusted third party to facilitate the payment and disbursement of funds.
Paymasters are ofted used for transactions involving goods, services, or products that usually involve large amounts of money.
Bianchi Fasani Law can provide this service to private individuals, companies, or large corporations.
Interested in using Bianchi Fasani Law for Paymaster services?
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