Question

The fact that the escrow instructions permit the seller to retain the earnest money deposit by the buyer justifies an escrow holder to pay such amount to the seller upon?

1) an apparent breach of escrow contract by the purchaser
2) consent from all parties to the escrow
3) instruction of the real estate agent
4) written instruction from the seller

Answer 1

An escrow holder can release the earnest money deposit to the seller when there is consent from all parties involved in the escrow. This ensures that all conditions are met and agreed upon before altering the original agreement.

Step-by-step explanation:

The fact that escrow instructions permit the seller to retain the earnest money deposit by the buyer typically justifies an escrow holder to pay such amount to the seller upon consent from all parties to the escrow.

An escrow is a legal arrangement in real estate where a neutral third party holds money on behalf of the transacting parties and releases it when certain conditions are met, such as the closing of a sale.

It is not sufficient for the real estate agent or the seller alone to instruct the escrow holder to release funds; all parties must agree to any deviations from the original escrow instructions.