Escrow & Title

In Michigan, funds held in a broker's escrow (trust) account for a failed transaction:

AAutomatically go to the broker as compensation for their time
BMust be released according to the contract terms or mutual agreement, and the broker may require a signed release or court order if parties dispute✓ Correct
CAre immediately refunded to the buyer
DAre transferred to the seller after 30 days

Explanation

When a Michigan transaction fails, disputed escrow funds cannot be unilaterally released by the broker. The funds must be disbursed according to the contract terms, by mutual written agreement of buyer and seller, or by court order if the parties cannot agree.

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