The following is not legal advice.

Do not ever get legal advice from a website or a real estate agent. What happens to Earnest Money in Washington state if the buyer defaults on the terms and conditions of the Purchase and Sales Agreement? For years, I assumed that if parties to the transaction could not decide on the disposition of the Earnest Money, then the Escrow company would automatically interplead the the funds in a local court.

Until this year, I never had the opportunity to experience disputed Earnest Money. However, my experience with an unnamed Escrow company, taught me otherwise. Here are three answers from three escrow companies about what happens in the case of disputed funds the emphasis is mine:.

The Purchase and Sale agreement requires that earnest money be interpleaded within 30 days of a parties demand. We feel that if there is more than one claim for funds, then those particular funds are disputed. State law dictates that disputed funds must be interpleaded.

Buying Real Estate in Washington - Macomber Law

We work very diligently with the parties to resolve the dispute before interpleading, but occasionally we have had to interplead funds. Attached is a copy of our escrow instructions. Disputed funds are discussed under General Provision No. In the event any dispute shall arise involving a party to this escrow concerning the property covered by these instructions, or in the event conflicting demands or claims are made with respect to this escrow or the rights of any of the parties hereto, it is expressly muzzelite bullpup stock marlin model 60 that Escrowee shall have the absolute right, at its election, to do any, or all of the following: Withhold and stop all further proceedings in performance of this escrow; file suit in interpleader and obtain an order from the court requiring the parties to interplead and litigate their claims and rights among themselves; or issue a check book buy certificate minute stock ledger either seller or buyer made payable jointly to seller and buyer in the amount of the sums in dispute.

In the eur gbp exchange rate historical an interpleader suit is brought, Escrowee shall be immediately fully released and discharged from all earnest money amount wa state to further perform any and all duties or obligations imposed upon it in this escrow.

It is our policy to accept earnest money checks forex trend lines tutorial deposit to our escrow trust account at the time the purchase and sale agreement is presented to open the order.

Escrow then sends an opening packet to the parties with escrow instructions for signing. These preliminary instructions specifically address our ability to interplead the funds if a dispute arises.

On those few occasions, we have made every effort to contact the parties and work out the disposition of the refund.

Also, we usually make a couple of attempts by letter. If we are still unable to reach resolution, we refer it to our attorney. Our position is that we are not specifically a party to the PSA and our legal dept has determined that we are not obligated to open an interpleader.

Earnest Money Disputes and HB • Seattle Bubble

Company C recommends the parties seek their own legal advise on the filing of such a lawsuit. Otherwise, we will continue to hold the funds and our policy is still to require mutual recission instructions. We have never had to interplead funds.

These situations are dealt with on a case by case basis and I hope the above serves as a general summary of our policy in regards to earnest money disputes. Are you concerned about what might happen to your Earnest Money should there be a dispute between the buyers and sellers? Take the time to find out the policy of local escrow companies BEFORE you sign a Purchase and Sale Agreement. Seattle Real Estate Professionals.

Earnest Money in Dispute? By Geordie Romer on September 3, at 4: Blog Search Keyword search across all the entries in this blog. Browse previous blog posts by month and year of entry.

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