Role of Escrow
In California, escrows are generally the vehicle through which parties transfer title of real property and provide payment of the purchase price. Since the transfer of title by the seller and the payment of the purchase price by the buyer are concurrent conditions, it is useful to have a neutral escrow agent process the transaction. In other states, this role is often handled by attorneys instead of an escrow company.
When a transaction fails to close and the parties are unable to agree on disposition of money deposited with escrow, the escrow company may need to interplead the funds with the superior court. In an interpleader action, the escrow company files a lawsuit against the parties claiming an interest in the escrow funds, deposits the escrow funds with the Superior Court and allows the court to determine the rights of the parties to the funds. Unless the parties agree otherwise, the escrow company is usually entitled to deduct its reasonable attorney fees and costs from the funds deposited in escrow. We are able to represent escrow companies, buyers or sellers in such actions.