In the event of a disagreement about earnest money, which entity should be contacted for resolution?

In situations where there is a disagreement regarding earnest money, it is essential to contact the title company for resolution. The title company typically holds the earnest money in escrow; their role is to safeguard the funds until the transaction is completed or terminated. Since they are neutral third parties in the transaction, they have established procedures for handling disputes about the earnest money.

If the parties involved cannot reach an agreement on how to proceed with the earnest money, the title company can help clarify and enforce the terms that were outlined in the purchase agreement. They are equipped to navigate the legalities surrounding such disputes and can act based on the contract's stipulations and any relevant local regulations. This makes them the appropriate entity to contact when there are any disagreements about the earnest money.

In contrast, while the local real estate board, the seller's attorney, and the buyer's lender all play essential roles in the transaction, they are either not directly involved in holding or managing the earnest money, or their responsibilities do not specifically include resolving disputes related to it. The title company’s position as the escrow holder makes it the best choice for assisting in such matters.