Final answer:
To resolve a dispute over earnest money in real estate, parties can negotiate, use escrow, seek mediation, or go to civil court. Escrow plays a key role by holding the funds with a neutral party.
Step-by-step explanation:
In the event of a disagreement or dispute over earnest money in a real estate transaction, the resolution typically involves engaging in negotiations, seeking mediation, involving real estate attorneys, or ultimately proceeding to civil court if necessary. The concept of Escrow is highly relevant here, as it involves a neutral third party holding the funds, which provides a structured process for disputes to be resolved.
If there is significant value at stake, parties may opt for a jury trial, but given the costs associated with suing, this is more common in cases where the amount of money or property involved justifies the expenses of legal action. Often, earnest money disputes can be resolved more amicably through negotiations or mediation, avoiding the need for court involvement.