Definition
Sometimes the buyer and seller disagree about whether earnest money should be returned or go to the seller if a deal falls apart. These disputes require negotiation or mediation to resolve fairly.
Not sure where this fits?
Answer a few questions and we’ll open the path that fits, at the right step.
Find my pathAbout this term
Disputes arise from contingency interpretation or breach claims. Escrow agent often holds funds pending dispute resolution. Mediation or arbitration required. Significant disputes require litigation. Documentation critical for dispute position. Careful contingency language prevents disputes. Escrow instructions define release triggers. Professional handling prevents small disputes becoming large. Timely resolution essential. Litigation is last resort. Mutual agreement preferred. Professional dispute resolution cheaper than litigation.
Pro Tip
Careful contingency language prevents earnest money disputes. Get disputes resolved quickly with professional help.
Example
Earnest money dispute was resolved through mediation determining refund eligibility.