Escrow Fee Charged By Broker for Holding Earnest Money?

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February 24, 2025

by a searcher from Buena Vista University in Douglas County, CO, USA

We recently went under LOI for a business acquisition where we offered a small amount in earnest money for exclusivity. The broker is saying we will need to pay them a $300 escrow fee to hold our deposit. Is this normal? I come from the real estate world and have never heard of charging to hold someone's deposit. I'm familiar with escrow accounts and the nuances that come with them. I feel like that should be a part of the cost of being a business broker, no?

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Reply by a searcher
from Buena Vista University in Douglas County, CO, USA
Update. The broker just sent me a link to Escrow.com (which I know for a fact charges $130 for this sized transaction). Also, they only allow an inspection period of up to 30 days before it automatically gets sent to the seller. I'm trying to figure out if this is amateur hour or if they are trying to take advantage of me.

Does anyone have referrals for a title or escrow company that they recommend? I'm having a hard time trusting anything they tell me now.
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Reply by an intermediary
from Texas A&M University in Dallas, TX, USA
Everything is a negotiation! But I feel like that's not normal and unnecessary. They are either going to be really hard to deal with or they are preparing to deal with a hard buyer (not you of course!). We'll have our attorney handle it and they won't charge anything (but maybe that's not normal).

Sorry for the annoyance from the broker - can be frustrating to start a process on a bad note. I also agree with Jason - pick your battles.

Best of luck!
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