Conflicting requests for the release of escrowed funds by both the buyer and seller are classified as what?

Conflicting requests for the release of escrowed funds from both the buyer and seller are classified as an escrow dispute. This situation arises when both parties involved in a transaction present opposing claims regarding the escrowed funds, typically stemming from disagreements over terms of the sale, breaches of contract, or conditions that have not been met.

In an escrow dispute, it falls upon the escrow agent, who is a neutral third party, to take appropriate steps to resolve the conflict. The escrow agent might require written instructions from both parties, seek legal advice, or even hold the funds until the dispute is resolved to avoid legal liability.

Other options do not accurately capture the essence of this situation:

• An escrow agreement refers to the initial contract outlining the terms under which the escrow operates, which does not specifically address conflicting claims.

• Escrow conflict might suggest a disagreement, but it lacks the formal recognition of a dispute, which involves actual conflicting claims.

• A mutual escrow request implies that both parties agree on a common course of action regarding escrow funds, which contradicts the premise of conflicting claims.

Thus, the term "escrow dispute" aptly describes the legal and procedural complexities that arise when both the buyer and seller seek different outcomes regarding the release