Escrow is a financial arrangement in which money is given to a third party to hold while a contract is being written. By securing and controlling payments until all requirements of an agreement are satisfied, it aids in the elimination of counter-party risk.
How It Works
Escrow Kenya provides buyers and sellers with protection, particularly when transacting online. The seller may rest comfortable knowing they will receive full payment for the sale, and the buyer can experience peace of mind knowing they cannot lose money in the transaction.
Agreement between the buyer and the seller: Any of the parties may start a transaction and submit the details as previously agreed. Examples include the purchase price, the mode of transportation, who is responsible for paying the escrow costs, when the goods or service will be delivered, etc.
The buyer makes a deposit: The buyer deposits money with Escrow Kenya once all terms and conditions have been outlined and accepted. The business checks the payment and alerts the vendor to ship the items.
Deliveries are made by the seller: The seller has the right to provide the buyer with the products or services. Escrow Kenya confirms that the purchaser of the products or services actually received them in excellent shape.
After evaluating the delivery, the buyer acknowledges it and gives the seller permission to release the cash.
Escrow Kenya reimburses the vendor: The escrow transaction is completed when the seller receives the money that was held in escrow.
Advantages of using an escrow service
Escrow arrangements are useful in a variety of circumstances, particularly when:
Large sums of money are at stake; the parties are spread out geographically; and a lack of confidence prevents a sale.
Escrow Kenya provides the service online for a considerably reduced price and in a few easy steps, making it more easier and more convenient than traditional escrow, which was frequently laborious and included banks and/or attorneys. Your purchase is completed with only a few clicks and with no legalese whatsoever—safely and securely!
No hidden or extra fees
Escrow Kenya does not charge you hidden fees. All applicable fees are quoted upfront.
Here's a breakdown of all fees:
Standard Escrow Fee
i) Fee for transactions in Kenya Shillings
General Merchandise & Services:- 3% of the purchase price, with a minimum fee of KES 200 and a maximum fee of KES 15,000.
Motor Vehicles:- 1.5% of the purchase price, with a minimum fee of KES 1,500 and a maximum fee of KES 15,000.
ii) Fee for transactions in US Dollars
General Merchandise & Services:- 3% of the purchase price, with a minimum fee of $2.50 USD and a maximum fee of $155 USD.
Motor Vehicles:- 1.5% of the purchase price, with a minimum fee of $15.50 USD and a maximum fee of $155 USD.
Discounted Escrow Fee:
Charged to the buyer where an order is voluntarily canceled by the seller. Calculated as 0.5% of the price, with a minimum fee of KES 200 for transactions in Kenya Shillings or $2.50 USD for transactions in US Dollars.
Dispute Administration Fee:
Charged to the buyer where an order goes through dispute resolution and the dispute is closed in the buyer's favor. It is calculated as the standard escrow fee, charged to the buyer in full, regardless of the initial fee-sharing agreements between the buyer and the seller.
Escrow Withdrawal Fee:
KES 25 for transactions in Kenya Shillings or $0.50 USD for transactions in US Dollars.
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