If the Buyer does not close, and the Seller if unwilling to refund the Deposit, what does the escrow agent holding the Deposit do with the money? The answer is to file an interpleader action and place the money with the clerk of court in the county where the Property is located. Then, the Buyer and Seller litigate the entitlement to the Deposit. However, the attorney for the escrow agent is entitled to be reimbursed its court fees and attorney’s fees for filing and handling the litigation. Depending on the amount of the Deposit, the court and attorney’s fees could significantly impact the amount of money available to be ultimately disbursed by the Court to either Seller or Buyer. Try to settle Deposit disputes so interpleaders are not necessary.
Mitch
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