Escrow, Transfers, and Getting Paid: The Practical Stuff

You've done the hard part. You built something. Someone wants to buy it. You've negotiated a price, and now you're staring at the finish line.

But wait - how does this actually work? Where does the money go? Who transfers what first? And what stops someone from just... taking your code and disappearing?

Let's walk through the practical stuff that nobody tells you about.

The Trust Problem

Here's the awkward reality of any online transaction:

• ·You don't want to transfer your app before you get paid
• ·The buyer doesn't want to pay before they get your app

Both positions are completely reasonable. And this is exactly why escrow exists.

What is Escrow (In Plain English)?

Think of escrow as a trusted middleman. Instead of sending money directly to you, the buyer sends it to a third party who holds it until everything is complete.

The flow looks like this:

1. ·Buyer deposits money into escrow
2. ·You see the money is "locked" (real, but not yours yet)
3. ·You transfer the app/code/assets
4. ·Buyer confirms everything works
5. ·Escrow releases the money to you

If something goes wrong? The escrow service mediates. They don't just hand over the money or return it - they actually investigate.

Popular Escrow Options for App Sales

Marketplace-Built Escrow

Platforms like Acquire.com and Flippa have their own escrow built in. This is the easiest option because:

• ·It's integrated into the sale process
• ·They know the context of app sales
• ·Disputes are handled by people who understand the space

Fees typically run 2-4% of the sale price.

Escrow.com

The classic option for larger transactions. They're not app-specific, but they handle all kinds of digital asset sales. More formal, more paperwork, but very secure.

Minimum fees start around $100, so this makes more sense for sales above $5K.

Wise (TransferWise) + Contract

For smaller sales or trusted communities, some sellers use a milestone approach:

• ·25% upfront
• ·25% after code transfer
• ·50% after handoff is complete

This requires more trust but has lower fees. Only do this with verified buyers or through established communities.

What Actually Gets Transferred?

This is where vibe coders often panic. "I don't even know what I have!"

Relax. Here's the standard checklist:

Code & Assets

• ·GitHub/GitLab access - Add them as collaborator, then transfer ownership
• ·Any design files - Figma, Canva, whatever you used
• ·Environment variables - The .env file (remove YOUR API keys first)
• ·Documentation - Even your messy notes are valuable

Accounts & Services

• ·Domain name - Transfer through your registrar (GoDaddy, Namecheap, etc.)
• ·Hosting - Either transfer the account or help them set up their own
• ·Database - Export and hand over, or transfer the service account
• ·Third-party services - Stripe, auth providers, email services

The Handoff Document

Create a simple document that lists:

• ·Every service the app uses
• ·Login credentials (use a secure method like 1Password share)
• ·How to deploy updates
• ·Known quirks or issues
• ·Your contact info for the support period

The Support Period

Most app sales include a support period - typically 2-4 weeks where you answer questions and help the buyer get settled.

This is NOT:

• ·Free development
• ·Bug fixing for issues they create
• ·Teaching them to code

This IS:

• ·Answering questions about how things work
• ·Explaining your prompts and approach
• ·Helping with the transition

Put a clear limit in your agreement. "Up to 5 hours of support over 14 days" is reasonable.

Getting Your Money

Once escrow releases funds, you need to actually receive them. Here's what to expect:

Bank Transfer (ACH/Wire)

• ·US domestic: 1-3 business days
• ·International: 3-5 business days
• ·Watch for wire fees ($15-30 typical)

PayPal

• ·Instant to your PayPal balance
• ·1-2 days to withdraw to bank
• ·Higher fees (2.9% + $0.30)

Wise

• ·Often fastest for international
• ·Very competitive exchange rates
• ·1-2 business days typically

Crypto

• ·Instant (once confirmed)
• ·Convert to fiat yourself
• ·More complexity, fewer protections

Taxes (The Fun Part)

Yes, you have to pay taxes on your sale. This is income.

In the US:

• ·Sales under 1 year of ownership: ordinary income rates
• ·Sales over 1 year: potentially capital gains rates
• ·You'll get a 1099 if using US platforms

Everywhere else:

• ·Check your local tax laws
• ·Keep records of all your expenses (hosting, API costs, tools)
• ·Consider talking to an accountant for sales over $10K

Red Flags to Watch For

🚩 Buyer wants to pay outside escrow "to save on fees" 🚩 Pressure to transfer assets before escrow is funded 🚩 Vague about their identity or company 🚩 Wants extensive access before the deal closes 🚩 Asks for source code "just to review" before paying

Legitimate buyers understand the process. They won't pressure you to skip security steps.

After the Sale: Clean Up

Once the money is in your account and the support period is over:

1. ·Revoke your access - Remove yourself from GitHub, hosting, etc.
2. ·Delete local copies - You don't own this code anymore
3. ·Update your records - For taxes, note the sale date and amount
4. ·Celebrate - Seriously. You built something and sold it. That's huge.

The Emotional Part

Nobody talks about this, but selling something you built can feel weird. Even if it was a weekend project. Even if you're excited about the money.

That's normal. You made something from nothing. It's okay to feel a little attached.

But here's the thing: that skill doesn't go away. You can do it again. And now you have proof that what you build has value.

Quick Checklist for Sale Day

• · Escrow is funded (verify directly, not from email)
• · All assets ready for transfer
• · Handoff document complete
• · Support period terms agreed in writing
• · Your banking info is correct in escrow system
• · You've backed up everything for your records

Closing Thoughts

The first sale is the hardest. Not because the process is difficult, but because everything is new. You don't know what questions to ask, what red flags look like, or how long things take.

But now you do. Or at least, you have a map.

The practical stuff isn't glamorous. It's escrow fees and tax records and bank transfers. But it's what separates "I made an app" from "I sold an app."

And that distinction? That's worth getting right.