What Is a Master Fee Protection Agreement?

Written by justin t. rush
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What Is a Master Fee Protection Agreement?
Master Fee Protection Agreements provide added transactional security. (signing a contract image by William Berry from Fotolia.com)

When a contract is formed for the sale of something, as seller generally has enough coverage to ensure that the terms of the contract are upheld. However, a Master Fee Protection Agreement (MFPA) can also be constructed for added security for issuance of payment.

Additional Guarantee

MFPAs agreements are often used in real estate transactions to speed up payment for the object or service that is received under the contract. MFPAs are usually constructed by the seller to guarantee that the contractual obligations will be met on time.

Terms and Conditions

Aspects of MFPAs that are common are non-disclosure and solicitation. Often the seller will require that the buyer does not discuss the terms of the original contract with other parties, and that the buyer will not look to outside parties for services that the contract is based upon.


MFPAs also usually contain a section that specifically sets down what the penalties will be for failure to comply with the non-disclosure and solicitation aspects of the agreements. Penalties typically consist of damages, fees, compensation, and legal fees acquired due to possible litigation for violating the agreement.

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