Legal Question in Real Estate Law in California

Escrow company is holding deposit hostage!!

I put $5K deposit in escrow on a

home purchase. Because of some

serious ethical breaches by the RE

Agent, both the seller and I agreed

to cancel the transaction. Escrow

agent is best friends with the

unethical RE Agent. Escrow agent

refuses to return the $5K to me

(buyer) even thought she has very

specific instruction letters from both

the seller and myself to immediately

release the $5K. Escrow agent flat-

out said that she will not return the

$5K until we sign a waiver absolving

her best friend (the RE Agent) of any

and all liability in regards to the

transaction. I do not want to shut

the door on any possible future

litigation against the RE Agent, so I

am refusing to sign any paper

holding the RE Agent harmless. Is it

legal for the Escrow company to hold

the $5K hostage? I thought that the

Escrow company was required to

return the money once both the

seller and buyer agreed on the

disposition of the deposit money. We

are in Southern California.

3 Answers from Attorneys

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