Final answer:
Escrow funds are held by a neutral third party and are typically disbursed upon completion of transaction conditions. A buyer's broker's commission can't usually be taken from escrow without mutual agreement or contractual stipulation.
Step-by-step explanation:
When a transaction fails to complete, and a seller pulls out at the last moment, the question arises whether the buyer's broker is owed a commission and if it can be taken from the escrow funds. In such circumstances, escrow acts as a neutral third party that holds funds to be disbursed upon the completion of certain conditions of the transaction. However, the commission for the buyer's broker cannot typically be taken directly from the escrow without agreement from both parties involved in the transaction or unless stipulated by the terms of the contract. Commissions are usually paid according to the real estate brokerage agreement and the escrow agreement. It's crucial to consult the binding agreements and, if necessary, legal representation to address the matter properly and within the framework of the law.