🚨 Agent Did WHAT?!
“Both Parties Refused to Sign the Earnest Money Release”

🚀 The Scenario
A buyer went under contract and deposited earnest money with the closing attorney.

Everything was moving forward…until it wasn’t.

The deal fell apart after the due diligence period.
The buyer believed they should still get their earnest money back.
The seller disagreed and believed they were entitled to keep it.

Both sides dug in.

The buyer refused to sign the release.
The seller refused to sign the release.

Now what?

The agent told their client:
“Don’t worry…we’ll just get the earnest money released.”

But no agreement was reached.

Days turned into weeks.
Weeks turned into months.

The earnest money just sat there.

🧠 Broker Guidance
Here’s the reality most agents don’t understand:

👉 Earnest money cannot be released without mutual agreement.

Under the contract and closing attorney procedures:

If there is no agreement, the closing attorney cannot choose a side.

At that point, the situation may escalate to what’s called an interpleader action.

That means:

This process can take months…and sometimes longer.

And yes…legal fees can eat into the amount being disputed.

✅ What Agents Should Do
Set expectations early…before there’s a problem.

✔ explain how earnest money works at the beginning of the contract
✔ make sure buyers understand when it is at risk
✔ communicate clearly when deadlines pass
✔ encourage reasonable negotiation if a dispute arises

If conflict starts:

✔ stay neutral and professional
✔ guide toward resolution, not escalation
✔ remind both parties what’s at stake (time, cost, stress)

⚠️ Broker Tip
The biggest mistake agents make?

👉 Acting like earnest money is easy to get back.

It’s not.

Once both parties are in dispute, that money can be tied up for a long time.

In this contract world:
No signatures = No release.