Escrow & Title
A Virginia buyer's earnest money is held in escrow. The transaction falls through due to a buyer default. Who controls the release of the escrow funds?
AThe listing agent automatically releases funds to the seller
BThe funds are released per the contract terms or by agreement of all parties; disputes go to litigation or interpleader✓ Correct
CVREB orders the release
DThe settlement agent releases funds after 30 days
Explanation
Escrow funds can only be released per the contract's terms, by written agreement of all parties, or pursuant to a court order. If there is a dispute, the escrow holder may file an interpleader action to have the court decide.
Related Virginia Escrow & Title Questions
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