Escrow Terms and Conditions

1. Escrow Service Overview

Karipe provides secure escrow services through Stripe Connect to protect both homeowners and contractors during project completion. Our escrow system ensures funds are safely held and released according to agreed-upon project milestones.

2. How Our Escrow System Works

Payment Process Flow

1. Project Agreement: Terms and milestones established between parties
2. Milestone Definition: Project broken into specific, measurable completion phases
3. Payment Deposit: Homeowner funds escrow for each milestone
4. Work Completion: Contractor completes milestone requirements
5. Verification: Work quality and completion verified
6. Release Trigger: Automatic or manual release upon completion verification

Milestone-Based System

• Projects divided into logical, measurable completion phases
• Payments released only upon verified milestone completion
• Automatic photography and documentation requirements
• Progress tracking with real-time updates
• Quality verification at each milestone

3. Escrow Account Management

Fund Security and Protection

• All funds held in FDIC-insured accounts through Stripe Connect
• Institutional-grade security with end-to-end encryption
• Funds completely segregated from Karipe operating accounts
• Real-time balance tracking and transaction reporting
• Regular third-party security audits and compliance reviews

Interest and Fee Structure

• No interest paid on escrow funds (standard industry practice)
• Transparent fee structure disclosed upfront before any transactions
• Payment processing fees clearly itemized and explained
• No hidden charges, surprise fees, or additional costs
• Competitive rates for secure, professional escrow services

4. Release Conditions and Triggers

Automatic Release

• Milestone completion verified by both parties
• 72-hour automatic release period if no disputes are raised
• Photo/video documentation confirms work quality and completion
• All milestone requirements fully satisfied
• Quality standards met according to project specifications

Manual Release

• Homeowner-initiated release upon satisfaction with completed work
• Contractor completion notification triggers verification review
• Platform verification of work standards and requirements
• Dispute resolution process if disagreements arise
• Clear audit trail for all manual release decisions

Emergency Release Procedures

• Immediate release available for verified safety-related issues
• Legal compliance requirements triggering fund release
• Platform discretion for exceptional circumstances
• Comprehensive documentation required for all emergency releases
• Review process for emergency release appropriateness

5. Dispute Protection and Resolution

Fund Protection During Disputes

• Automatic hold on all payments during active disputes
• Complete protection for both parties during resolution process
• Continued project protection services throughout dispute
• Interest accrual to eventual recipient based on final resolution
• Secure fund management throughout entire dispute process

Integration with Dispute Resolution

• Seamless integration with our comprehensive dispute resolution process
• Evidence-based release decisions following investigation
• Expert assessment integration for complex technical disputes
• Final resolution enforcement through escrow system
• Clear appeals process with documented procedures

6. Refund Policy and Procedures

Homeowner Refund Rights

• Full refund guaranteed for unstarted work or services
• Partial refund available for incomplete milestones
• Quality-based refunds for demonstrably substandard work
• Processing timeframe: 3-5 business days for standard refunds
• Expedited processing available for verified urgent situations

Contractor Payment Protections

• Payment guaranteed for all properly completed work
• Strong protection against frivolous or unfounded disputes
• Fair and impartial resolution process for all disagreements
• Prompt payment processing upon milestone completion
• Interest compensation for delayed payments due to disputes

7. Fees and Costs

Platform Service Fees

• Transparent, percentage-based fee structure
• Competitive rates based on project value and complexity
• No upfront costs, monthly fees, or minimum charges
• Volume discounts available for high-value projects
• Clear fee disclosure before any financial commitments

Payment Processing Costs

• Standard Stripe Connect processing fees apply
• Competitive credit card transaction costs
• ACH transfer options available for lower fee processing
• International payment support with transparent fee structure
• No markup on third-party processing fees

8. Legal Compliance and Regulatory Framework

Regulatory Compliance

• Full compliance with all applicable money transmission laws
• Licensed and bonded in all required jurisdictions
• Regular compliance audits and regulatory reviews
• Consumer protection law compliance in all operating areas
• Anti-money laundering (AML) and Know Your Customer (KYC) compliance

Tax Implications and Reporting

• 1099 reporting for all contractor payments over IRS thresholds
• Tax documentation provided as required by law
• Integration capabilities with popular accounting systems
• Comprehensive year-end summaries available for tax filing
• State and local tax compliance where applicable

9. Technology Integration and User Experience

Platform Technology Features

• Real-time balance tracking and transaction monitoring
• Mobile application integration for convenient payment management
• Automated reporting and comprehensive documentation
• API access available for advanced users and integrations
• Advanced security features including two-factor authentication

User Experience Optimization

• Simple, intuitive payment interface designed for ease of use
• Clear milestone tracking and progress visualization
• Automated notifications and reminder systems
• 24/7 customer support availability for all users
• Comprehensive help documentation and tutorials

10. Limitation of Liability and Disclaimers

IMPORTANT: ESCROW SERVICES ARE PROVIDED "AS IS" WITH LIMITED LIABILITY. KARIPE'S LIABILITY FOR ESCROW SERVICES IS LIMITED TO THE AMOUNT OF FUNDS ACTUALLY HELD IN ESCROW FOR YOUR SPECIFIC TRANSACTION. WE ARE NOT LIABLE FOR INDIRECT, INCIDENTAL, SPECIAL, OR CONSEQUENTIAL DAMAGES ARISING FROM ESCROW SERVICES.

11. Account Termination and Closure

Standard Account Closure

• Final fund distribution upon project completion
• Automatic account closure after final payment processing
• 30-day grace period for any final transactions or adjustments
• Comprehensive documentation retained for required record-keeping periods
• Final statements and tax documents provided as needed

12. Contact Information and Support

For escrow-related questions and support:

• Email: escrow@karipe.com
• Phone: 1-800-ESCROW-1 (1-800-372-7691)
• Live Chat: Available 24/7 through platform
• Emergency Support: Available for urgent payment issues
• Business Hours: Monday-Friday 8 AM - 8 PM EST

These escrow terms govern all payment transactions on the Karipe platform and are designed to provide maximum protection and security for all parties involved in home improvement projects.