Escrow Agreement Information
Q: Who is responsible for paying the escrow fees?
We strongly suggest that you use our escrow agent when buying or selling a business asset so that the funds transaction can be fully verified. The buyer or seller can pay the escrow fee, or they can split the fee 50/50.
Q: How much is the escrow fee?
The escrow fee is calculated on the purchase price and the service level chosen (Standard or Premier) and/or the currency type of the transaction. To determine the exact fee for your transaction, use our escrow fee calculator.
Standard service escrow pricing on transactions up to $5,000 is 3.25% with a $10 minimum. On transactions up to $25,000 the fee is $162.50 plus 0.26% of the amount over $5,000. For example, a transaction of $10,000 would have an escrow fee of $175.50. Transactions over $25,000 have a flat fee of 0.89%.
Transactions with a Buyer outside the United States will be charged an additional $25.00 to cover any intermediary bank fees. This will be added to the escrow fee, regardless of who is paying the fee, when the Buyer selects to pay by international wire transfer.
Premier Service is available for transactions in United States Dollars and has a transaction limit of $5,000.00. Premier Service allows customers greater convenience and speed and additional fees are added based on additional services chosen.
Purchase Agreement Information
Q: Who is responsible for paying the fees to generate a purchase and sale agreement?
We strongly suggest that you use our contract partner LawDepot when buying or selling a business so that the terms and conditions can be described in a contract and agreed upon in writing by both parties. Although it is customary in a transaction for the seller to pay for the cost of the contract, the buyer can pay the contract fee, or they can split the fee 50/50.
Q: What does it cost to generate a contract?
LawDepot offers state-specific, customizable business and asset purchase and sales agreements. When you create a document at LawDepot, you may choose from three different licensing options:
Free Trial: Free access to all documents for one week. $33 per month thereafter. No commitment - cancel online at any time.
Basic: $ 7.50-$ 39 per document, depending on the document. Provides full access to a single document for 14 days from the date of purchase.
One Year Pro: $95.88 Create and print as many documents as you need for a full year.
Alternatively, you can work with a lawyer to draw up a business purchase contract or an asset transfer agreement. This often requires 5 to 10 hours at an hourly rate of $100 to $300, for a total of $500 to $3,000.