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Question:

Martha is the escrow officer overseeing the closing of a purchase transition involving Seller Jason and Buyer Lena. A dispute arises between Jason and Lena regarding repairs agreed to be made to the property by Jason. Escrow fails to close. No mutually agreed to instructions are given to Martha concerning the disbursement of the funds in escrow. What should Martha do with the deposit held in escrow?

A Deposit the funds with the court.
Explaination

Unless escrow receives mutual instructions to disburse the funds held in escrow when escrow fails to close, escrow is to deposit the funds with the court. This relieves escrow of any further responsibility to account for the funds, called an interpleader. Thus, escrow can close out its trust account on this escrow file.