Before you can move into your dream house, a settlement has to take place. If all goes well, you are officially a new homeowner. But what happens when there is a bump in the road, like say…an escrow dispute?
When involved in a real estate closing transaction, an escrow agreement is usually required. During escrow, a deposit is held in an escrow account by a third-party, usually a Real Estate agent or Title Company, like Title Junction. The buyer and seller must comply with a mutual written agreement that ensures the procedures that must be met. This must happen before any funds can be released from escrow.
In the case of an escrow dispute, the release is determined by the third-party and the rules and regulations that it follows. Some agents may opt to freeze the escrow account if the dispute remains unresolved and may require legal actions. If such an issue arises, both buyer and seller will have to settle their dispute before a judge and present all evidence until a decision is made. However, legal action should be a last resort. Not only is a court dispute expensive, but the process is very long and burdensome. Who needs that kind of additional stress?
Here at Title Junctionany escrow funds that are in a dispute are first handled by our office with a courtesy letter. It will explain the process of the dispute, giving all parties ample time to think about the decision being made. All parties should refer to their contract and contact an attorney if necessary.
At Title Junction we care about helping you stay informed throughout your real estate transaction. Have questions? Give us a call at 239.415.6574.
In case you missed it, check out our last Title Junction post: What Is Earnest Money?