Reviewed by Parham Zar, Founder and Surrogacy Expert at Egg Donor & Surrogacy Institute (EDSI). Updated 2025.
This guide explains the most important surrogacy agency contract red flags intended parents should understand before signing an agreement. It covers financial risks such as agency controlled escrow, hidden costs, and missing rematch protection, along with legal and medical decision risks. Understanding these warning signs helps intended parents choose a surrogacy agency that prioritizes transparency, safety, and long term protection.
1. The Agency Owned Escrow Account
The Red Flag:
The agency asks you to wire funds into a general business account or an in house escrow entity they control.
The Risk:
If the agency faces litigation or insolvency, client funds may be frozen or lost. This risk has been documented in past industry cases when independent escrow safeguards were not used.
The Safety Standard:
Intended parents should require independent, bonded third party escrow that is legally separate from the agency. Funds should never be accessible to the agency itself.
2. The Wait-Listed Match Fee
The Red Flag:
A substantial non refundable sign on or match fee is required before any surrogate profiles are presented.
The Risk:
Families may wait twelve months or longer without a viable match while fees remain non refundable regardless of outcome.
The Safety Standard:
A performance aligned fee structure prioritizes presenting qualified surrogate candidates before major financial commitments are locked in.
3. The Low Ball Surrogate Compensation Estimate
The Red Flag:
Advertised surrogacy costs that appear significantly lower than industry norms.
The Risk:
Key variables such as cesarean delivery, bed rest, lost wages, monthly allowances, and travel are often excluded, leading to unexpected costs later.
The Safety Standard:
Ethical surrogacy budgeting includes transparent line item estimates and a contingency fund designed to protect surrogate health and pregnancy outcomes.
4. No Rematch Protection Clause
The Red Flag:
Contracts that state agency fees are forfeited if a surrogate fails medical screening or withdraws.
The Risk:
A meaningful percentage of candidates do not pass final medical clearance. Without rematch protection, families may be required to restart the process at full cost.
The Safety Standard:
A responsible agency remains committed to finding a medically cleared surrogate without charging a second full agency fee.
5. The Rotating Case Manager
The Red Flag:
Intended parents are assigned to a general team or experience frequent changes in their primary contact.
The Risk:
Critical medical, legal, and emotional details can be lost during transitions, increasing stress and miscommunication.
The Safety Standard:
Director led or senior managed care ensures continuity, accountability, and informed decision making throughout the journey.
6. Restrictive In Network Clinic Requirements
The Red Flag:
The agency requires intended parents to use a specific fertility clinic or physician.
The Risk:
This can limit medical choice and may not align with embryo quality, genetic considerations, or prior treatment history.
The Safety Standard:
A broad clinical network allows families to choose the clinic best suited to their medical needs with guidance based on outcomes rather than exclusivity.
7. Lack of Independent Legal Counsel
The Red Flag:
The agency suggests using the same attorney for both the intended parents and the surrogate.
The Risk:
Shared legal representation creates unavoidable conflicts of interest and weakens contract enforceability.
The Safety Standard:
Each party must have separate independent legal representation to ensure informed consent and legally sound agreements.
The EDSI Safety Benchmark
Egg Donor & Surrogacy Institute (EDSI) follows a safety first model designed to reduce financial, legal, and emotional risk for intended parents.
Parham Zar, Founder of Egg Donor & Surrogacy Institute (EDSI), has overseen surrogacy journeys for over two decades, guiding families through complex medical and legal decisions with a focus on transparency and continuity of care.
Learn more about Parham Zar at
https://eggdonorandsurrogacy.com/parham-zar/
Frequently Asked Questions About Surrogacy Agency Contract Red Flags
They include agency controlled escrow, non refundable upfront fees, unclear compensation estimates, lack of rematch protection, rotating case management, forced clinic use, and shared legal representation.
Independent escrow protects intended parents by keeping funds legally separate from the agency, reducing financial risk.
Without a rematch clause, intended parents may lose agency fees and be required to pay again. A strong contract includes rematch protection.
Look for transparency in costs, independent escrow, director level oversight, open clinic choice, and mandatory independent legal counsel.
