Escrow & Title
What is 'earnest money dispute resolution' in Hawaii when buyer and seller disagree about who keeps it?
AA. The escrow company automatically gives the earnest money to the seller if the buyer cancels
BB. When parties cannot agree on earnest money disposition, the escrow holder may file an interpleader action in court to have a judge decide, or the parties may use the contract's dispute resolution provision✓ Correct
CC. The listing agent has authority to decide earnest money disputes between clients
DD. Earnest money disputes are resolved by the Hawaii Real Estate Commission
Explanation
When buyer and seller dispute earnest money disposition, the escrow holder (unable to release without both parties' consent) may file an interpleader action—depositing the funds with the court and letting a judge decide. The purchase contract may also specify mediation or arbitration as dispute resolution.
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