Escrow & Title
In West Virginia, an escrow agent who fails to follow proper closing instructions from the lender and buyer may be liable for:
ANothing, since the agent was following standard industry practice
BBreach of contract and potentially fraud✓ Correct
COnly a fine from the WVREC
DLiability only to the seller
Explanation
An escrow agent is bound by the closing instructions from all parties. Failure to follow proper instructions can constitute breach of the escrow agreement and, depending on the circumstances, may give rise to fraud claims.
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Key Terms to Know
Escrow
A neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
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