Escrow Disputes Can Get Expensive—Fast!

When buyers and sellers can’t agree on who gets the escrow deposit, an escrow holder may file an interpleader action, asking the court to decide.

Here’s the important part: attorney’s fees and court costs may be paid from the escrowed funds themselves. That means a deposit worth fighting over can be significantly reduced—or potentially mostly consumed—by the cost of the dispute.

The takeaway for REALTORS®? Encourage parties to work toward a resolution whenever possible before an escrow dispute ends up in court.

Sometimes resolving the disagreement is worth far more than “winning” it.