Escrow Agreement

This Escrow Agreement explains how Luuk Lock — the escrow service built into every Luuk transaction — holds, manages, and releases funds between buyers and sellers. It forms part of, and should be read alongside, our Terms of Service.

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1. What Luuk Lock Is

Luuk Lock is an escrow mechanism that holds a buyer's payment in a secure, segregated account until the conditions of the sale have been met. It exists to remove the single biggest risk in stranger-to-stranger commerce: paying first and hoping the other side delivers.

Important

Luuk Lock financial services are provided in partnership with CBN-regulated payment processors and licensed financial institutions. Funds held in escrow are not deposits and are not insured by the NDIC. Luuk Lock is not a bank account, savings product, or investment vehicle.

2. How an Escrow Transaction Works

1. Payment. The buyer pays the agreed price (after any in-app negotiation) at checkout. Funds move immediately into escrow — not to the seller.
2. Hold. The seller is notified that payment has been secured and is cleared to ship. Funds remain locked and cannot be accessed by either party during this stage.
3. Shipment. The seller dispatches the item within the dispatch window shown in-app and uploads valid tracking information.
4. Confirmation. Once the buyer receives the item, they confirm delivery in the app after inspecting it. This is the buyer's opportunity to flag a problem before funds move.
5. Release. Upon confirmation, escrowed funds (minus Luuk's service fee) are released to the seller's payout account.

3. Automatic Release

If a buyer does not confirm delivery or raise a dispute within the window shown in-app after a tracked delivery is marked as received by the courier, funds are automatically released to the seller. This protects sellers from indefinite holds on completed deliveries. The exact window is displayed in your order timeline before checkout.

4. Disputes & Refunds

If an item does not arrive, arrives damaged, or differs materially from what was shown in the listing video, the buyer may open a dispute before confirming delivery. While a dispute is open:

• Funds remain locked in escrow and cannot be released to either party.
• Both buyer and seller may submit evidence (photos, videos, delivery records, messages).
• Luuk's trust & safety team reviews the evidence and issues a binding decision to either release funds to the seller or refund the buyer.

Decisions are made in good faith based on the evidence available at the time and are final for the purposes of releasing escrowed funds.

5. Fees

Luuk deducts a service fee from the escrowed amount before payout to the seller. The exact fee for a given sale is always shown in-app before the seller confirms the listing or accepts an offer — there are no hidden deductions at release time.

6. Cancellations

An order may be cancelled and fully refunded to the buyer before the seller marks it as shipped. Once an item has shipped with valid tracking, cancellation is handled as a dispute under Section 4 rather than a simple refund.

7. Currency & Payout

All transactions on Luuk are processed in Nigerian Naira (₦). Seller payouts are made to the bank account verified during onboarding. Payout timing follows the standard settlement schedule of our payment processing partners and may take 1–3 business days to reflect after release.

8. Limitation of Escrow Protection

Luuk Lock protects against non-delivery and material misrepresentation of an item as shown in its video listing. It does not cover buyer's remorse, minor cosmetic variation disclosed in the listing, or issues arising after a buyer has confirmed delivery and taken possession of an item in acceptable condition.

9. Changes to This Agreement

We may update this Escrow Agreement from time to time to reflect changes in our payment partners or regulatory requirements. Material changes will be communicated through the app before they take effect.