In the event of a dispute over escrow funds, who is in control of these funds?

In the context of escrow funds during a real estate transaction, the control of such funds typically rests with the buyer and seller. This is because escrow is meant to provide a neutral holding place for money until both parties have met the contractual obligations of the sale.

When a dispute arises, the buyer and seller must usually agree on how to proceed with the funds. This means they would need to communicate and potentially negotiate the release of those funds based on the terms outlined in the escrow agreement and the circumstances of the dispute. It reflects the parties’ ownership and interest in the transaction and ensures that both parties have a say in resolving the matter.

The broker, title company, and court system may play roles in facilitating the resolution of disputes, but they do not have unilateral control over the escrow funds without the mutual agreement of the buyer and seller. Their involvement typically comes into play if the parties cannot reach an agreement, at which point mediation or legal action might be necessary.