Escrow DisputesDisputes are inevitable occurrences in the buying and selling of real estate. One type of real estate dispute that commonly occurs between buyers and sellers is an escrow dispute.
What Is An Escrow Dispute?When an offer for a real estate purchase is made, buyers are usually required to deposit a certain sum of money to secure the property. This is referred to as earnest money. When a real estate transaction fails, there may be a disagreement as to whether or not the earnest money should be returned to the would-be buyer. This is an example of an escrow dispute.
How Are Escrow Disputes Resolved?No matter how heated the disagreement, escrow dispute resolution is possible. One of the best ways to resolve an escrow dispute is to prevent one from happening in the first place. Escrow dispute prevention can be achieved through the drafting of a thorough real estate purchase contract.
In situations where escrow disputes do arise, however, the assistance of a professional real estate lawyer is required. This legal specialist can review the terms of the purchase agreement as well as any relevant state laws to advise you on the best course of action regarding escrow dispute procedures. In most cases, a cancellation of the offer must be made, and a letter demanding the release of the deposit will be sent on the buyer’s behalf. Mediation and/or arbitration may also be required.
In cases where a buyer has removed all contingencies from the original offer, he or she will likely be unable to recover the earnest deposit. If contingencies are still outstanding, then typically, the seller will be required to return the deposit. There can be exceptions to this rule, however.
How to Hire the Best Escrow Dispute AttorneyWhen you find yourself involved in an escrow dispute, you’ll need the help of an experienced real estate attorney. Look for one with direct experience handling these types of disagreements, and don’t hesitate to ask about their success rates.
The professional lawyers and legal staff at Ensberg Law Group have decades of combined experience practicing real estate law. This experience includes helping numerous clients in West Covina and the surrounding areas resolve escrow account disputes. Our experience spans mediation, arbitration, and even litigation in defense of both the buyer and the seller. We would be happy to assist you with your case as well. Call us to schedule a consultation, during which we can discuss the details of your dispute.