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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">As a third party escrow, the only thing I would add is that as a practical matter it is best to avoid the Court action if you can. Not only will the escrow company charge
either for doing it or for paying a lawyer to file the action (if there isn’t one with the firm) but there are filing fees and then you have to go to court and have a hearing etc. Essentially, I can’t imagine the parties don’t end up costing themselves $2000
in legal fees and costs between the two of them before all is said and done. Of course ultimately that is what has to happen if you can’t get a mutual instruction on release. What we normally do when we’ve been notified that there is a dispute over EM is
send out a letter that essentially says “We’ve been notified that there is a dispute over the earnest money in transaction X. We are not arbiters and do not determine which party has the claim to the funds. If the parties cannot agree on this matter and
do not submit a mutual instruction to us by Y date (usually 30 days), we will interplead the monies into the registry of Z court. Please be advised that the fees and costs associated with this filing will be requested as an award to us from the Court.”<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">I know of some firms that withhold the monies from the amount pled into court but without the parties having previously signed something with the escrow company authorizing
that, I think that is a dangerous game. I will also say that unless things have changed, technically the escrow company
<i>could</i> decide which party was correct and pay the money out. The reason they do not is because if they are wrong they are liable to the other party and essentially have to pay out twice.<o:p></o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">From:</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"> wsbarp-bounces@lists.wsbarppt.com [mailto:wsbarp-bounces@lists.wsbarppt.com]
<b>On Behalf Of </b>david@vaughanlawonline.net<br>
<b>Sent:</b> Thursday, March 10, 2016 9:03 PM<br>
<b>To:</b> WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com><br>
<b>Subject:</b> Re: [WSBARP] Residential P&S agreement ?<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Verdana",sans-serif;color:black">Justin,<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Verdana",sans-serif;color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Verdana",sans-serif;color:black">If the transaction was under standard NWMLS forms, page 2, paragraph b. (second paragraph in b.) specifies that in the event of a disagreement over disbursement of the earnest money
deposit, the "closing agent" shall commence an interpleader action. There are other terms there that speak to timing that might be relevant to this situation.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Verdana",sans-serif;color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Verdana",sans-serif;color:black">Best regards<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Verdana",sans-serif;color:black">David Vaughan<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Verdana",sans-serif;color:black">-------- Original Message --------<br>
Subject: [WSBARP] Residential P&S agreement ?<br>
From: Justin Monro <<a href="mailto:justinm@monrolawfirm.com">justinm@monrolawfirm.com</a>><br>
Date: Thu, March 10, 2016 5:32 pm<br>
To: "<a href="mailto:wsbarp@lists.wsbarppt.com">wsbarp@lists.wsbarppt.com</a>" <<a href="mailto:wsbarp@lists.wsbarppt.com">wsbarp@lists.wsbarppt.com</a>><br>
<br>
Listmates: property located in Snohomish county. One of my real estate brokers represents sellers of property listed on nwmls. Buyers are represented by another real estate agency. Mutual acceptance occurred at end of January 2016. Buyers were obligated to
close P&S transaction on March 8,2016, but failed to do so. No extensions were signed. The agent for buyers has been very difficult to deal with. Buyers have financial funds to close [cash] but chose to try and finance deal but failed to comply with terms
of financing addendum's. My clients [sellers] do not want to deal with buyers anymore. Property was placed back on market as active listing to mitigate sellers damages.<br>
<br>
My question is: there is a significant amount of earnest money held in third party escrow account. Sellers wants to retain earnest money as damages per Form 21 P&S agreement. Buyers and buyers real estate agency are claiming they want earnest money back from
escrow. What are others doing in regards to earnest money disputes? <br>
Interpled with court or arbitration? <br>
<br>
<br>
Thank you,<br>
<br>
Justin K Monro <br>
Attorney at law<br>
<br>
Sent from my iPhone<br>
<br>
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