Escrow Disclosure

Last updated: December 2024

Escrow Service Overview

WorkBoat.ai provides escrow services to facilitate secure maritime vessel transactions. This disclosure explains how our escrow service works, your rights and obligations, and the protections in place for your funds.

How Our Escrow Works

Our escrow service acts as a neutral third party holding funds until transaction conditions are met:

  1. Buyer deposits funds into the WorkBoat.ai escrow account
  2. Funds are held securely while transaction conditions are completed
  3. Upon satisfaction of all conditions, funds are released to the seller
  4. Our transaction fee (2.5%) is deducted at closing

Fund Protection

Your escrow funds are protected through multiple safeguards:

  • Funds are held in FDIC-insured bank accounts (up to applicable limits)
  • Funds are segregated from WorkBoat.ai operating accounts
  • We maintain detailed ledger records for all transactions
  • Regular third-party audits verify fund integrity

Banking Partner

WorkBoat.ai partners with Modern Treasury and partner banks to provide secure fund management. Our banking infrastructure supports:

  • Wire transfers (domestic and international)
  • ACH transfers
  • Real-time payment tracking
  • Multi-currency support

Release Conditions

Funds are released when all specified transaction conditions are met. Typical conditions include:

  • Completion of vessel inspection/survey
  • Title verification and clearance
  • Document execution by all parties
  • Regulatory approvals (if applicable)
  • Any custom conditions specified in the transaction

Dispute Resolution

In the event of a dispute:

  1. Funds are held pending resolution
  2. Parties are encouraged to negotiate in good faith
  3. WorkBoat.ai may facilitate mediation
  4. Funds may be held pending court order in unresolved disputes

WorkBoat.ai does not arbitrate disputes but will comply with valid court orders regarding fund disposition.

Fees and Deductions

Our standard transaction fee is 2.5% of the transaction value. This fee is:

  • Deducted automatically from escrow at closing
  • Non-refundable once a transaction closes
  • Refundable (less processing costs) if a transaction is cancelled before closing

Cancellation and Refunds

If a transaction is cancelled:

  • Funds are returned to the depositing party (typically the buyer)
  • Wire transfer fees may be deducted from refunds
  • Refund processing typically takes 3-5 business days

Tax Considerations

WorkBoat.ai does not provide tax advice. Users are responsible for understanding and complying with tax obligations related to their transactions. We may issue tax reporting documents (such as 1099 forms) as required by law.

Frequently Asked Questions

Are my funds insured?

Funds are held in FDIC-insured accounts. Standard FDIC insurance limits apply.

How long do wire transfers take?

Domestic wires typically settle same-day. International wires may take 2-5 business days depending on the destination.

What happens if WorkBoat.ai goes out of business?

Escrow funds are held in segregated accounts and remain the property of the depositing parties. Funds would be returned according to transaction terms.

Contact

For questions about escrow services, email us at escrow@workboat.ai.

By using our escrow services, you acknowledge that you have read and understood this disclosure. See our Terms of Service for complete terms and conditions.