Escrow disbursement order
An Escrow disbursement order is a course of action for determining the disposition of a contested deposit in an escrow account. The potential buyer in a real estate transaction is in legal control of the escrowed funds, not the real estate broker. The broker acts as the custodian of the account.
The buyer has the right to withdraw the offer and earnest money deposit up to the time the seller accepts the offer to purchase. Upon accepting the contract, the seller also has a legal interest in the escrow deposit. The broker can disburse the funds after he receives agreements from the buyer and seller, for example, a signed release of deposit or a signed closing statement.
When a broker is acting as an escrow agent and receives conflicting demands for escrow funds or if that broker has good faith doubt concerning the person entitled to escrowed property a dispute occurs and the seller and buyer can not resolve the issue amongst themselves, the escrow agent must then, depending on local laws) either notify the state's real estate commission and/or a mediator and/or litigation.
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