Transfer and paperwork
How payment works when you sell an app: escrow, fees, and avoiding scams
Short answer
In an app sale, escrow means the buyer deposits the full price with a neutral escrow service before you transfer the app, and the money is released to you once the buyer confirms receipt. Escrow.com’s published fees for website and domain deals run about 1.2–2.6% depending on the deal size (checked September 2026), and buyer and seller agree who pays. Never transfer the app before the funds are secured, and never share your developer account login.
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How does escrow work in an app sale?
Escrow holds the buyer’s money until you’ve delivered the app, so neither side has to trust the other with the full amount. A typical sequence:
- Agree terms in writing: price, what’s included, handover support and an inspection period. What belongs in that document is covered in app purchase agreement.
- Open the escrow transaction with those terms. Both sides accept it.
- The buyer pays escrow. Escrow verifies the funds and tells you they’re secured.
- You transfer the app through App Store Connect and hand over code, domain and accounts. On Android the same step is the Google Play app transfer.
- The buyer inspects and accepts within the agreed inspection period.
- Escrow releases the money to you.
Escrow comes after due diligence: by the time you open a transaction, the buyer should already have verified your numbers. My app due diligence checklist shows what that involves.
Selling from outside the US? Check first whether escrow works with your bank country: selling your app as a non-US founder.
What does escrow cost?
On Escrow.com, roughly 1.2% to 2.6% of the price, falling as the deal gets bigger. Its fee calculator for domain and website transactions, which I use as the reference for app deals, showed these standard tiers when I checked in September 2026:
| Transaction value | Approx. fee |
|---|---|
| Up to $5,000 | 2.6% (min. $50) |
| $5,000–$50,000 | 2.4% (min. $130) |
| $50,000–$200,000 | 1.9% |
| $200,000–$500,000 | 1.5% |
| $500,000–$1,000,000 | 1.2% |
Source: Escrow.com fee calculator, checked September 2026. Other sites quote different tables, so use the live calculator before you agree. Concierge service costs more.
Who pays the escrow fee? It’s negotiable. The buyer may cover it, or you split it. Agree it in writing before the transaction is opened.
Can I get paid another way (instalments, earn-out)?
Yes, but every alternative to full payment into escrow shifts risk towards you, the seller.
- Marketplace payment. If you list on a marketplace, check how it handles escrow and what that adds on top of its own commission. The commissions themselves are compared in Flippa fees vs Empire Flippers and Acquire.com.
- Funds held by a lawyer. An option some parties use in larger deals.
- Instalments or an earn-out. Part of the price up front, the rest later or tied to future revenue. Once the app is in the buyer’s account, you no longer control the thing that earns the money, so unsecured instalments are the riskiest option for a seller. If you accept one, get the schedule, the security and what happens on a missed payment in the signed agreement.
How do I avoid app-sale scams?
Don’t move the app until the money is secured, and open the escrow service yourself. These are the red flags I’d walk away from:
- “Send me your developer account login.” Never. Apps move through Apple’s or Google’s official transfer.
- “Transfer first, I’ll pay after.” Only if the money is already in escrow.
- An escrow site you’ve never heard of, suggested by the buyer. Fake escrow websites exist. Go to escrow.com (or your chosen provider) yourself, never through a link the buyer sends.
- Overpayment: “I sent too much, please refund the difference.” A classic fraud pattern.
- Pressure and urgency with no questions about the app itself.
- No real identity: no name, no track record, no public profile.
How does a direct buyer handle payment?
The same way: through escrow, with the structure agreed before anything moves. When I buy an app, I use a reputable escrow service, so your money is secured before the app leaves your account. We agree who covers the escrow fee up front. I sign an NDA on request, and I never ask for your developer account login. I mainly buy iOS apps, and I’m open to Android apps when the fit is right. I don’t buy games, SaaS, or web-only products. Deals range from $10K to $1M+, and the best fit is an app that has been live for at least 6 months with steady revenue.
Frequently asked questions
Is escrow necessary when selling an app?
For any meaningful amount, yes. The seller knows the money exists before transferring, and the buyer knows they’ll get the app before the money is released.
Who pays the escrow fee?
It’s negotiable. The buyer may pay it, or buyer and seller split it. Agree it in writing before opening the transaction.
How long does escrow take?
It depends on how the buyer funds the transaction and on the inspection period you agree. The app transfer itself is quick: Apple says it processes an accepted transfer in up to two business days.
Should I accept payment in instalments?
Only with care. Once the app is transferred you no longer control it, so unsecured instalments put the risk on you. Put the schedule and what happens on a missed payment in the signed agreement.