Escrow in a web page (can we do it?)

[voskyc]

Hello to everyone in this forum, thank you for this space to write down our legal doubts
To the issues:
We are creating a site where we offer communication between "buyers" and "seller" with a particular kind of service.

After a seller provide the service, the buyer should pay the accorded amount of money.

We want to monetize via the middle way taking a small % from the seller transaction.

Instead of implementing the usually evaded system of "pay us % after you pay the user directly" like other sites, to guarantee that we are going to be pay we would like that the buyer, pay to "us" and then we withdraw to the seller (after charging the %).

This should be done only in the moment of pay (service between seller and buyer is finished), not before.

Is this considered Escrow anyway?

Is this legal?
When i say legal, i mean, we are not a bank or finance institution and we won't want to get into that business.
Can we do that legally without having that kind of entity?

If it is considered Escrow and it is not legal without being a bank or similar regulation, can we make a walk around saying that the buyers PAY/ buy OUR product?, and then we pay the seller?

As i see it there is a "blur" line to what is escrow and what is not (or maybe Im wrong, that is why I'm here ).


Some information you may need:
-Hosting service is in USA (Probably)
-We are not USA residents, neither we have USA nationality, neither our company.


Thanks in advance, and I apologize for the redaction, I'm not English native speaker .

 

[quincy]

voskyc, this site handles U.S. law questions only. You will need to find an attorney in your area of the world for answers.

 

[voskyc]

Hi, thanks for the quick answer.

What would be the answer in the case we set our company in USA (anyway most users are from USA :- ) ).

Thanks.

 

[quincy]

Hi, thanks for the quick answer.

What would be the answer in the case we set our company in USA (anyway most users are from USA :- ) ).

Thanks.

When that applies, perhaps you can post back here then. Right now, it will be the laws in your own country that apply.

I suggest that, since you are still in the beginning stages of setting up your company and you seem to have a lot of questions about its operation and the legalities involved, you sit down with an attorney in your area for a personal review of the facts.

 

[voskyc]

After talking to a friend in my country and explaining the situation he told me that in fact apply USA laws.

We will use paypal and paypal is a USA corporation, or in other way to see it, the "escrow" (or not) moment will be done in the USA.
Edit: laws in my country apply only after I withdraw money to my country. And my company local related activities.

So the questions are in fact for American laws.

That there wiill be resumed in 2:

1)is that (original post) escrow?

2)Can we do that (be escrow or not)?

Thanks in advance.

 

[TheGeekess]

After talking to a friend in my country and explaining the situation he told me that in fact apply USA laws.

We will use paypal and paypal is a USA corporation, or in other way to see it, the "escrow" (or not) moment will be done in the USA.
Edit: laws in my country apply only after I withdraw money to my country. And my company local related activities.

So the questions are in fact for American laws.

That there wiill be resumed in 2:

1)is that (original post) escrow?

2)Can we do that (be escrow or not)?

Thanks in advance.

I suppose your friend is an attorney?

 

[quincy]

voskyc, you and your company are located in a country other than the U.S. If and/or when you or your company are sued, you and your company will be sued in your country under your country's laws.

Therefore, it will be the laws of your country that you need to concern yourself with as you set up your company.

Because there is clear indication by the content of your posts that you desperately need the advice and direction of an attorney, I suggest you seek one out in your country to assist you.

Good luck.

 

[voskyc]

It is a "contador" (Spanish name) is the professional hired person in my country to resolve any finance issues of a company and related laws, (taxes, jury form etc).

After we withdraw money to our account in our country he is in, and local laws applies (where do you get the money, how, how much you should pay in our country for that, etc etc).

However, the 2 questions in the above post have no relation at all with our country. (Escrow or not and if that activity is allowed without any other juridic form like a bank or similar in the USA and with -probably- USA clients/users).

For example, if paypal was in my Country, YES i can do it. However it is not .

There is no relation at all between the buyer, paypal and the seller, even more, we can hire a USA citizen (or any nationality) to manage the paypal withdraws to seller.

 

[quincy]

It is a "contador" (Spanish name) is the professional hired person in my country to resolve any finance issues of a company and related laws, (taxes, jury form etc).

After we withdraw money to our account in our country he is in, and local laws applies (where do you get the money, how, how much you should pay in our country for that, etc etc).

However, the 2 questions in the above post have no relation at all with our country. (Escrow or not and if that activity is allowed without any other juridic form like a bank or similar in the USA and with -probably- USA clients/users).

For example, if paypal was in my Country, YES i can do it. However it is not .

There is no relation at all between the buyer, paypal and the seller, even more, we can hire a USA citizen (or any nationality) to manage the paypal withdraws to seller.

What country are you in?

 

[voskyc]

voskyc, you and your company are located in a country other than the U.S. If and/or when you or your company are sued, you and your company will be sued in your country under your country's laws.

Therefore, it will be the laws of your country that you need to concern yourself with as you set up your company.

Because there is clear indication by the content of your posts that you desperately need the advice and direction of an attorney, I suggest you seek one out in your country to assist you.

Good luck.

If our company is sued, it could be for many reasons as you may know.

We have managed all the other cases (it is common know what problems to face with online web sites).

However this kind of transaction, (escrow or not.. that is one of the questions), is the other probably sue, but by the your (American) finance regulator for violating some law (or not?... that is the other question) relating to that activity.

So the question is, are we violating any law respecting that activity?
Lawyer knows about THEIR country rules and laws, I can not ask my lawyers or account mans about other countries regulations, and one that is so blur like "is this escrow"?

Thanks.

 

[Zigner]

What country are you in?

Not the US

 

[Zigner]

If our company is sued, it could be for many reasons as you may know.

We have managed all the other cases (it is common know what problems to face with online web sites).

However this kind of transaction, (escrow or not.. that is one of the questions), is the other probably sue, but by the your (American) finance regulator for violating some law (or not?... that is the other question) relating to that activity.

So the question is, are we violating any law respecting that activity?
Lawyer knows about THEIR country rules and laws, I can not ask my lawyers or account mans about other countries regulations, and one that is so blur like "is this escrow"?

Thanks.

You have been told SEVERAL times to seek the guidance of an attorney in YOUR country. Your situation is complex, you need to be speaking to an attorney.

 

[voskyc]

You have been told SEVERAL times to seek the guidance of an attorney in YOUR country. Your situation is complex, you need to be speaking to an attorney.

Yes, several times I've explained why a lawyer in my country is not useful for this but a lawyer in yours ;-).

Anyway, even when "contadores" understand of local laws and HE told me to query an American lawyer, I will ask a lawyer in my country.

After he, probably answer me the same that the contador (or not), may i come back here with the answer? :-D.

Thanks for your time.

 

[quincy]

You have been told SEVERAL times to seek the guidance of an attorney in YOUR country. Your situation is complex, you need to be speaking to an attorney.

In addition to needing the guidance of an attorney in your own country because your company will be governed by your country's laws (whatever country that may be) and not U.S. laws, you will have the benefit of being able to communicate with the attorney in your own language.

Seek out the help of an international law attorney in your part of the world. Good luck.

 

[tranquility]

Legal representation and advice is a part of a business plan on any such idea. The laws are constantly in flux regarding taxes, international monetary transactions and money laundering, and terrorism. There is no way any sane person would seek out the advice of strangers on the internet for a set of actions that could, depending on how things work out, end the person up on the wrong side of the bars in Guantanamo.