The Security for Expenses Scheme is an independent deposit service that helps building owners to deposit the necessary security under a in an easy, accessible and (most importantly) entirely cost-free way.
It is run by DOS & Co., established escrow agents who are registered with the Financial Conduct Authority for the provision of payment services. We deposit all of your security for expenses at the Bank of England, where it is held liquid, unencumbered, and entirely protected from the unlikely event of our insolvency, while you carry out your works.
At any one time, we hold millions of pounds in escrow accounts, construction retention deposit accounts and other third-party managed accounts.
The Scheme is free for all users because:
Provided your Party Wall Award is for a contemplated building project in the United Kingdom, and it is signed and requires you to deposit security, we don't require any particular form of Party Wall Award.
Your Party Wall Award will contain a paragraph that says something along the following lines:
The Adjoining Owner served notice for Security for Expenses in accordance with section 12(1) of the Act. The Building Owner shall place the sum of £amount in escrow.
We offer 'bespoke' security for expenses arrangements as well. You can find out more about those at the dospay Party Wall Escrow website page and you can request a quote for your particular requirements.
The Security for Expenses Scheme operates to simple, straightforward terms and conditions which are designed to provide clarity and comfort to all users.
Our Security for Expenses accounts carry no fees. There are no hidden fees for compliance, due diligence, changes to your bank account, bank charges, fees charged as a percentage of the Security sum, or the like. Our service is 100% funded by the interest, if any, we receive on the Security while we are holding it, and by our other business activities.
The only time you may be required to pay a fee is if we become involved in a dispute between you and your neighbour and you require us to provide information other than confirming the balance of your account and any transactions you've made (eg, you require us to provide witness statements, or engage in correspondence relating to your dispute). You can self-serve this information on our Security for Expenses Portal at any time.
To date, this has never happened (we have never had to charge these fees) , but our ability to hold security at no cost to you means that we must protect ourselves in the unlikely event that you need more from us.
You can see the detailed provision of our ability to charge fees in the event of a dispute in the Dispute Fees section of our Scheme Rules.
