Escrow Deposit Disputes
We have experience handling escrow deposit disputes. Escrow agents are fundamental to all real estate transactions.
If you are involved in an escrow deposit dispute we will provide guidance and legal advice about resolving the dispute.
In today’s real estate market, many buyers are reconsidering their offers, deciding to terminate their purchase contracts, and seeking a return of their escrow deposit. These situations not only require a determination concerning the rights of the parties to enforce the purchase contract provisions but also often result in disputes over who is entitled to receive the earnest money deposit.
If you or your client is entering into a real estate sale or purchase we can assist you to prevent any escrow deposit disputes. If an escrow dispute has already taken place, call us to help you resolve it.
For example, the situation below is not uncommon.
A seller walked away from a purchase and sale contract three days before closing. The buyer presented a release and cancellation, but the seller refused to sign, claiming entitlement to the deposit, which was being held by a local title company. Who notifies the Florida Real Estate Commission (FREC) of the escrow dispute?
In this instance, no one would be notifying FREC. Section 61J2-10.032(1)(a), Florida Administrative Code, requires a real estate broker to notify FREC within 15 business days after receiving conflicting demands on trust funds maintained in the broker’s account, but this provision does not apply to title companies. In most cases, a title company will require clear written instructions from both parties before releasing the deposit. If the parties can’t provide matching instructions within a reasonable period, the title company will likely deposit the funds with the local clerk of courts, and either party may then file a court case to argue why they believe they’re entitled to the deposit.
