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An escrow legal service is an authorized procedure in which any commodity or a property is given to the third party upon the fulfillment of some predefined conditions or contracts. The property can be any asset, money, website domain or even a software code as explained above. Once the deed is fulfilled, the escrow agent delivers the asset held to the third party. In case the condition has not been fulfilled, the escrow amount is maintained.

At times, it is not necessary to hold the legal duties of a trustee on the escrow company, this often leads to negligence on the part of the two parties involved.

People often hire services to get their software codes written by an expert professional, it sounds interesting and a wonderful solution to a problem. However there are things that can go wrong. Software escrow is one way of protecting you in certain types of projects when certain things go wrong.

When you lease out the work of writing a software code for you, one important thing to think over is that whether the source code that has been developed belongs exclusively to the developer, or whether you get a copy. If you do, you have the safety of being able to have someone else make changes or fix bugs in the future, but the developer is giving up some of his or her potential control of that software. If the developer retains the source code and you don't have access to it, then you are dependant on the developer for all future updates. Typically developers will charge more if you get the source code.

Just imagine, if the developer goes away or if all your code disappears? That's where software or Escrow services software comes into play.

As an agreement, you and the developer aggress to hand over the completed source code to a third party escrow company or an escrow agent. The agreement states the conditions where that agent would be allowed to release the source code to you. For example one of the conditions might be the developer's bankruptcy or going out of business for other reasons. By using software escrow, the developer is protected as long as it makes sense for them to retain control, and you are protected should the developer disappear. (Naturally other conditions might trigger the release, but the developer's going out of business is a clear example.)

Escrow software simply means to deposit the source code of a software into the account which is held by a third party. Software Escrow is requested by a party to ensure the maintenance of the software. The code of the software is released to the holder, if in case he faces bankruptcy and has files for it. In case, he is not able to maintain an upgrade the software regularly, the source code is released.

About the Author: Randell Rogfend is a father of three children who has had a long and fulfilling writing career. His passion is writing and he has contributed to countless newspapers, magazines and books. www.escrowsoftware.ixzc.com The following site is his collection of articles about his latest interest: www.escrowsoftware.ixzc.com/software%20escrow%20agent