In our continued effort to keep our agents and escrow officers apprised of trends in the Title industry, our claims counsels and administrators have provided the following claim summaries.
It’s our goal to share these stories and help you avoid similar scenarios in the future. In this installment, we will focus on Quit Claim Deeds. Here’s how it played out:
It has happened to you before. For one of numerous reasons, a party breaches and a transaction does not close. You notify the parties and forward cancellation documents. In response, the buyer and the seller make conflicting demands to release the earnest money deposit from the escrow account.
After you request that both the buyer and the seller agree to an escrow instruction to disburse in one way or another, they will not do so. Worse, both sides intensify their demands with calls to management and threats of litigation.