During the process of buying a home in Florida or elsewhere, it is common for money to be held in what is known as an escrow account. These accounts are used to hold related funds before the sale of a residential property is completed. Unfortunately, it is not uncommon for escrow disputes to arise during residential real estate sales. When this happens, having legal counsel on one’s side may prove invaluable.
An escrow account is simply a holding tank. During a real estate transaction, deposits are held in the escrow account until the deal is closed. Upon closing, any funds in the account will be distributed to the proper parties. After a sale is complete, a second escrow account is often set up to hold funds for taxes, insurance and private mortgage insurance, if required.
During a real estate transaction, the escrow account will be managed by a neutral third party. If the sale goes according to plan, the escrow officer is charged with releasing funds and recording the deed and title transfer. However, if a problem arises and the escrow agent refuses to release the money or the money is found to be unavailable due to mismanagement or another questionable practice, an escrow dispute may arise.
Until everything is finalized, including the releasing of funds from the escrow account, a Florida home buyer will not have rights to the residential property he or she is trying to purchase. There are a number of reasons why escrow disputes may occur. To learn more about this problem and how an attorney can protect your interests during an escrow dispute, you can visit our firm’s website.