A payer is a neutral third party and has no knowledge of the details of the transaction. They take care of the commissions received and spend the funds accordingly. In return for their services, the payer receives a small amount which is paid directly from the proceeds of the commission before the payment. A payer is a person appointed by a group of buyers, sellers, investors or lenders to receive, hold and distribute funds, commissions, fees, salaries (remuneration) or other commercial, loan or sale revenues within the private or public sector. [1] Specific titles within the UK government are Paymaster of the Forces, Paymaster General[2] and Paymaster of Pensions. The primary purpose of a payer is to receive trust fees from buyers in a major transaction and pay them to the sellers and brokers of the transaction. In the United States, there is no licensing requirement to be a payer. However, a payer is often a licensed attorney, due to the security concern that U.S. attorneys are required to keep all funds that do not belong to them directly in an “Attorney`s Trust Account” (also known as an IOLTA account) overseen by the state bar in the state where the attorney practices. A payer is usually, but not required, to be a lawyer (also known as a “lawyer`s payer”). When it comes to paying commissions for contracts related to large sums of money (such as oil, gas, steel, iron, gold, NTDs, VGs, T-Strips, and other instruments), most banks in the U.S. are very cautious when it comes to dealing with such large sums of money.
In addition, most buyers and sellers of these transactions want to place the money for payment with a neutral third party. In most cases, the buyer and seller involved in the transaction need a payer to be appointed to manage all incoming and outgoing funds….
