Under the TREC contract, if the escrow agent interpleads (files with the court) the disputed earnest money, who pays the escrow agent's costs for the interpleader action?
Correct Answer
B) The escrow agent's costs may be deducted from the escrowed funds as provided in the contract
Under the TREC contract, the escrow agent's costs for an interpleader action may be deducted from the escrowed funds. The remaining balance is then held pending the court's decision on disposition.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
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