How much does an escrow agent cost? Scale and examples
The cost of an escrow agent is a legitimate question before embarking on a transaction. At Fidens, the fees are transparent: they are calculated on the sale price of the transaction, according to a tapering scale. The higher the amount held in escrow, the lower the rate applied.
A scale based on the sale price
The principle is simple: a flat fee applies to the smallest transactions, then a tapering rate takes over beyond that. A flat fee of EUR 1,800 covers transactions up to EUR 180,000 in sale price. Beyond that, the rate for the bracket applies to the price, while ensuring continuity of the scale from one bracket to the next.
A few examples
- A EUR 150,000 transaction: a flat fee of EUR 1,800.
- A EUR 500,000 transaction: around EUR 7,500 (a rate of 1.5%).
- A EUR 1,000,000 transaction: around EUR 12,000 (a rate of 1.2%).
- A EUR 3,000,000 transaction: around EUR 30,000 (a rate of 1%).
Why a tapering scale?
The escrow agent's work - drafting or reviewing the agreement, opening the CARPA sub-account, checking the release conditions, following the matter - does not grow in proportion to the amount held in escrow. A tapering scale reflects this reality: the rate falls as the sale price rises, which prevents the fees from becoming disproportionate on the largest transactions.
What the fees cover
- The opening and management of the CARPA sub-account dedicated to the matter;
- The safekeeping of the funds throughout the term of the escrow;
- The checking of the release conditions set out in the agreement;
- The release of the funds to the designated beneficiary.
What comes on top
The fees are stated exclusive of tax. To these may be added any bank charges - an international transfer, for example - which remain payable by the parties. Above EUR 10,000,000, the transaction is the subject of a tailored quote.
Would you like an estimate for your transaction? The amount of the fees is displayed automatically when your matter is opened, based on the sale price.
Frequently asked questions
How are an escrow agent's fees calculated?+
They are based on the sale price of the transaction, according to a tapering scale: a flat fee of EUR 1,800 covers transactions up to EUR 180,000, then a decreasing rate applies beyond that. The higher the amount, the lower the rate.
Does the amount held in escrow change the price?+
Yes. Since the fees are calculated on the sale price, a larger transaction leads to higher fees in value, but at a lower rate. Above EUR 10 million, a bespoke quote is drawn up.
Are there charges in addition to the fees?+
The fees are exclusive of tax. To these are added, where applicable, bank charges linked to the movement of funds, such as the cost of an international transfer, which remain payable by the parties.
A transaction to secure?
Fidens sets up the escrow of the price on a CARPA account, under the responsibility of a lawyer.