Sellers/Agent Placed the EMD in an Interpleader Account w/the CA Courts

[Lorraine Hadden]

We made an offer on a home that was to be an investment property. 

After the home inspection, we opted to cancel escrow and requested our EMD back. The seller's refused and placed the funds in the hands of the court in an Interpleader account. Ended up hiring an attorney to demand the release of the funds. By the time it was all over, the court fees, attorney fees ate up the entire EMD and then some --- this seller never intended to sell the house. They collect EMD from multiple potential buyers - then transferred the EMD into an interpleader accounts in hopes of absconding with all the EMD.

This was a nightmare!!!

[Jay Hinrichs]

funds only go into interpleader after months of sitting in escrow. the court just does not hand the money to the seller either.. if not agreed upon the funds go to the state etc.
No way is this a scheme to keep EM for the seller..

Anytime I have had EMD disputes it usually gets solved with a 50 50 split since I know what will happen.. what happens is exactly as you describe.. money is to small to realistically hire an attorney to collect.. So even though our right better get half back then none and or be in the hole like your experiencing.

[Lorraine Hadden]

This EMD did not sit for months. We completed our due diligence within 10days and once the report came back, we immediately requested our deposit back. Sellers had multiple "accepted" offers and all were placed in interpleader accounts. I have all the documentation on this dispute. Not going to argue the point.