diff --git a/README.md b/README.md
index b4da467..f86c518 100644
--- a/README.md
+++ b/README.md
@@ -6,6 +6,12 @@ Soroban smart contracts for the AgentPay protocol: escrow, usage recording, and
 
 - **escrow** — Records usage and supports settlement logic for machine-to-machine payments.
 
+### Admin proposal validation
+
+`propose_admin_transfer` rejects proposing the current admin as the new admin
+(panics with `InvalidAdminProposal`). This surfaces no-op handovers as caller
+mistakes rather than silently storing a pending entry equal to the active admin.
+
 ## Prerequisites
 
 - [Rust](https://rustup.rs/) (stable, with `rustfmt`)
diff --git a/contracts/escrow/src/lib.rs b/contracts/escrow/src/lib.rs
index 1811bed..015af46 100644
--- a/contracts/escrow/src/lib.rs
+++ b/contracts/escrow/src/lib.rs
@@ -114,6 +114,10 @@ pub enum EscrowError {
     MigrationVersionMismatch = 11,
     /// `record_usage` referenced a service that has been disabled.
     ServiceDisabled = 12,
+    /// `propose_admin_transfer` was called with the current admin as the
+    /// proposed new admin — a no-op handover that is rejected to surface
+    /// caller mistakes early.
+    InvalidAdminProposal = 13,
 }
 
 #[contracttype]
@@ -596,6 +600,9 @@ impl Escrow {
             .get(&DataKey::Admin)
             .unwrap_or_else(|| panic_with_error!(&env, EscrowError::NotInitialized));
         admin.require_auth();
+        if new_admin == admin {
+            panic_with_error!(&env, EscrowError::InvalidAdminProposal);
+        }
         env.storage()
             .persistent()
             .set(&DataKey::PendingAdmin, &new_admin);
diff --git a/contracts/escrow/src/test.rs b/contracts/escrow/src/test.rs
index a233a9d..71626cc 100644
--- a/contracts/escrow/src/test.rs
+++ b/contracts/escrow/src/test.rs
@@ -248,3 +248,30 @@ fn test_record_usage_rejects_zero_requests() {
     let service_id = Symbol::new(&env, "weather_api");
     client.record_usage(&agent, &service_id, &0u32);
 }
+
+#[test]
+#[should_panic(expected = "Error(Contract, #13)")]
+fn test_propose_admin_transfer_rejects_self_target() {
+    let env = Env::default();
+    let (client, admin) = setup_initialized(&env);
+    client.propose_admin_transfer(&admin);
+}
+
+#[test]
+fn test_propose_admin_transfer_accepts_distinct_address() {
+    let env = Env::default();
+    let (client, _admin) = setup_initialized(&env);
+    let next = Address::generate(&env);
+    client.propose_admin_transfer(&next);
+    assert_eq!(client.get_pending_admin(), Some(next));
+}
+
+#[test]
+fn test_accept_admin_transfer_clears_pending() {
+    let env = Env::default();
+    let (client, _admin) = setup_initialized(&env);
+    let next = Address::generate(&env);
+    client.propose_admin_transfer(&next);
+    client.accept_admin_transfer(&next);
+    assert_eq!(client.get_pending_admin(), None);
+}