The escrow agent holds funds under instructions and may release only as directed or by court order. Disputes involve whether conditions were satisfied, and the agent typically interpleads contested funds.
The agent owes duties to both parties.
Alternative Names:
Escrow Agent Dispute|Escrow Fund Dispute
Why it Matters?
The escrow agent's obligation to follow instructions literally means it will not exercise judgment about which party is right, and ambiguous instructions produce interpleader rather than resolution. Drafting instructions that specify exactly what documentation triggers release avoids that outcome. The agent's dual duty also means neither party can direct it unilaterally, regardless of how clear that party believes its entitlement to be.
Frequently Confused with
Related terms
Frequently asked questions
Will the escrow agent decide who is right?
What prevents interpleader?
