Occasionally, an escrow agent will default on his duty to deliver a legal document or property placed with him in escrow. Examples of such defaults include:
Between the buyer and seller, the loss typically falls on the party who owns the property at the time of the default.
If an escrow agent defaults on his duty before the time when the seller is entitled to it, the loss falls on the buyer since it is still his money.
If the default occurs after the time when the seller becomes entitled to the money, the loss falls on him since it is now considered his property.
If you bear the loss resulting from an escrow agent's default, then you have several options depending on the state in where you live. These include filing a lawsuit for:
The best way to protect against an escrow agent's default is to make sure you select an escrow agent you can trust. Otherwise, you should consistently check on the status of the escrow and make sure your escrow agent is doing his job.
If your escrow agent defaults and you are responsible for the loss, an experienced real estate attorney can help you in obtaining specific performance and/or damages. You may also wish to report the escrow agent's actions to the police for possible criminal prosecution.
Last Modified: 03-31-2015 09:32 AM PDTLaw Library Disclaimer
We've helped more than 4 million clients find the right lawyer – for free. Present your case online in minutes. LegalMatch matches you to pre-screened lawyers in your city or county based on the specifics of your case. Within 24 hours experienced local lawyers review it and evaluate if you have a solid case. If so, attorneys respond with an offer to represent you that includes a full attorney profile with details on their fee structure, background, and ratings by other LegalMatch users so you can decide if they're the right lawyer for you.