An earnest money dispute. Should the money be released to the seller? Why should the REALTOR® be the one who has to decide? Indeed, the following constitutes one of the most commonly asked questions on the Michigan Association of REALTORS® Legal Hotline.
For years, REALTORS® have been counseled over the Legal Hotline that, in a situation where both the buyer and the seller assert a claim to the earnest money deposit, the REALTOR® should not release the money to either party no matter how strongly the REALTOR® believes that party is entitled to the money.
While there is no requirement that a REALTOR® initiate an interpleader action to dispose of a disputed earnest money deposit, in some cases, a REALTOR® may choose to do so in order to take himself or herself out of the middle of a dispute.
The question which always arises is, “How do I interplead the money and how much will it cost me to have an attorney do it?” This download is designed to provide some general guidance to interpleading funds so that a REALTOR®’s attorney or a REALTOR® may be able to cheaply dispose of an earnest money deposit and the dispute that travels with it.