SECTION 1: FEE PAYMENT REQUIREMENTS
Fees Are Paid Upfront by Both Parties
Due to state regulatory policy and fiduciary obligations, all escrow fees must be paid upfront by both parties before any principal funds are deposited into escrow.
| Party | Fee Responsibility | Timing |
|---|---|---|
| Buyer / Initiator | 50% of total escrow fee (or custom split as agreed) | Before principal deposit |
| Seller / Counterparty | 50% of total escrow fee (or custom split as agreed) | Before principal deposit |
This is non-negotiable. No exceptions. No deferrals. No "deduct from principal" arrangements.
Why Fees Cannot Be Deducted from Principal
State escrow regulations and our fiduciary duty require strict segregation of client principal from operational revenue. Deducting fees from principal would:
- Commingle funds — violating segregated account requirements
- Create accounting ambiguity — making reconciliation and audit impossible
- Expose principal to fee disputes — if a transaction fails, fee recovery becomes entangled with principal return
- Trigger regulatory penalties — state escrow commissioners prohibit fee deduction from principal in licensed escrow operations
Our commitment: Your principal deposit is never touched for any purpose other than the agreed-upon transaction release.
SECTION 2: FEE STRUCTURE
Standard Escrow Fees
| Transaction Size | Total Escrow Fee | Buyer Pays | Seller Pays |
|---|---|---|---|
| $0 – $10,000 | 1.5% | 0.75% | 0.75% |
| $10,001 – $100,000 | 1.0% | 0.5% | 0.5% |
| $100,001 – $1,000,000 | 0.75% | 0.375% | 0.375% |
| $1,000,001+ | Custom quote | Per agreement | Per agreement |
Minimum fee: $25 per party (covers transactions under $3,334)
Maximum fee cap: $50,000 per party for transactions above $10M
What's Included
- Multi-signature cold storage custody
- Smart contract deployment and execution
- Real-time verification via oracle network
- Standard dispute resolution (if needed)
- Regulatory compliance and reporting
- Insurance coverage during escrow period
- 24/7 transaction monitoring and support
Additional Services (Optional)
| Service | Fee | Paid By |
|---|---|---|
| Express release (< 1 hour) | +0.25% | Requesting party |
| Dedicated arbitrator | $500/hour | Initiating party |
| Custom oracle development | $2,500 – $10,000 | Requesting party |
| Cross-currency hedging | 0.15% spread | Both parties (split) |
| Third-party legal review | $350/hour | Requesting party |
| On-site verification (real estate) | $1,500 + travel | Requesting party |
SECTION 3: DEPOSIT REQUIREMENTS
Principal Deposit
After fees are paid, both parties deposit the agreed principal:
| Asset Type | Deposit Method | Confirmation Time |
|---|---|---|
| USD / Fiat | Wire transfer, ACH, or Plaid-linked bank | 1-4 hours |
| Bitcoin (BTC) | Wallet transfer to multi-sig address | 3-6 confirmations (~30 min) |
| Ethereum (ETH) | Wallet transfer to smart contract | 12 confirmations (~3 min) |
| Stablecoins (USDT/USDC) | Wallet transfer to smart contract | 12 confirmations (~3 min) |
| Other Crypto | Per asset-specific requirements | Variable |
Deposit Verification
- Fiat: Confirmed by banking partner (JPMorgan, Silvergate, Signature)
- Crypto: Confirmed by oracle nodes on respective blockchain
- Securities: Confirmed by transfer agent or DTC participant
- Real Estate: Confirmed by title company or county recorder integration
Funds are not "in escrow" until verification is complete. Until then, they remain in transit status.
SECTION 4: FEE REFUND POLICY
When Fees Are Refunded
Table
| Scenario | Fee Refund |
|---|---|
| Transaction cancelled by mutual agreement before principal deposit | 100% refund to both parties |
| Counterparty fails to deposit principal within 72 hours | 100% refund to fee-paying party |
| Transaction fails due to verified fraud by counterparty | 100% refund to innocent party |
| Regulatory prohibition prevents transaction completion | 100% refund to both parties |
When Fees Are Not Refunded
Scenario | Fee Status |
|---|---|
| Transaction completes successfully | Fees earned, no refund |
| Party withdraws after principal deposit | Fees retained, principal returned |
| Dispute initiated and party loses arbitration | Fees retained, loser pays arbitration costs |
| Party provides false information during KYC | Fees forfeited, account terminated |
SECTION 5: PAYMENT METHODS
Accepted for Fee Payment
| Method | Processing Time | Limits |
|---|---|---|
| Bank wire (domestic) | Same day | No limit |
| ACH transfer | 1-3 business days | $25,000/day |
| Debit card | Instant | $10,000/transaction |
| Credit card | Instant | $5,000/transaction |
| Crypto (BTC/ETH/USDC) | 3-30 minutes | No limit |
Note: Credit card payments incur a 2.9% processing fee passed through at cost. No markup.
Accepted for Principal Deposit
| Asset | Method | Minimum | Maximum |
|---|---|---|---|
| USD | Wire, ACH, Plaid | $500 | No hard cap |
| BTC | Wallet transfer | 0.01 BTC | No hard cap |
| ETH | Wallet transfer | 0.1 ETH | No hard cap |
| USDT/USDC | Wallet transfer | $500 equivalent | No hard cap |
| Other crypto | Per asset | Variable | Per agreement |
SECTION 6: STATE-SPECIFIC REQUIREMENTS
Regulatory Variations
Certain states impose additional requirements on escrow fee handling:
| State | Additional Requirement |
|---|---|
| New York | Fees must clear 24 hours before principal deposit |
| California | Fee receipt must be acknowledged in writing by both parties |
| Texas | Fee calculation must use state-approved fee schedule for real estate |
| Florida | Fee funds must be held in separate non-interest account |
| Illinois | Fee disputes subject to state escrow commissioner jurisdiction |
Compliance: Our system automatically applies state-specific rules based on transaction jurisdiction and party locations.
SECTION 7: INVOICING & RECEIPTS
Automatic Documentation
Every fee payment generates:
- Fee invoice — Itemized breakdown, party responsibility, payment method
- Fee receipt — Confirmation of receipt and application
- Escrow agreement — Signed by both parties, referencing fee payment
- Tax document — 1099 or equivalent for business clients (if applicable)
All documents available in dashboard and sent via email.
SECTION 8: LATE PAYMENT & DEFAULT
Fee Payment Timeline
| Milestone | Deadline | Consequence of Non-Payment |
|---|---|---|
| Fee payment | Within 24 hours of escrow initiation | Transaction auto-cancels after 24 hours |
| Principal deposit | Within 72 hours of fee confirmation | Transaction auto-cancels, fees refunded |
| Extension requests | Before deadline expiration | 0.1% daily extension fee (max 14 days) |
Default Scenarios
| Party | Default | Outcome |
|---|---|---|
| Buyer only pays fees, not principal | After 72-hour window | Fees refunded to buyer, transaction cancelled |
| Seller only pays fees, not principal | After 72-hour window | Fees refunded to seller, transaction cancelled |
| Both pay fees, neither deposits principal | After 72-hour window | Fees refunded to both, transaction cancelled |
| One party deposits, other doesn't | After 72-hour window | Deposited principal returned, fees refunded to non-defaulting party, defaulting party forfeits fees |
SECTION 9: TAX IMPLICATIONS
Fee Deductibility
Escrow fees may be tax-deductible as transaction costs. Consult your tax advisor. We provide:
- Annual fee summary for tax reporting
- Business EIN documentation upon request
- International tax forms (W-8BEN, W-8ECI, etc.) for foreign parties
Principal Deposit Tax Treatment
Principal deposits are not taxable events. We do not report principal movements to tax authorities unless required by law (e.g., CTR for cash transactions >$10,000).
SECTION 10: QUESTIONS & DISPUTES
Fee Disputes
If you believe fees were charged in error:
- Submit dispute via dashboard or email to billing@metlifeescrow.com
- Acknowledgment within 4 business hours
- Investigation within 48 hours
- Resolution within 5 business days
If unresolved, fee disputes may be escalated to binding arbitration per our Terms of Service.