Interpleader Action After a Failed Purchase in Jacksonville, Florida

What happens after a failed real estate purchase? What is an interpleader action?

The attorneys at Atlantic Coast Title & Escrow are here to give you some insights. Let’s take a look at some of the basics of what happens after a failed sale/purchase, and how an experienced real estate law attorney could help. 

Interpleader Action: The Basics

When you’re buying a property, you’re usually required to put down a binder deposit. This is a sum of money held in escrow as a sign of your commitment to the purchase. But what happens if the deal falls through - does the buyer or the seller get the deposit? This can clearly lead to some disagreement. 

If both parties can’t agree on who gets the money, the escrow agent, who’s holding the deposit, might file an “interpleader action.” The agent files a lawsuit in which both the buyer and seller are named as defendants, deposits the disputed funds with the court, and steps out of the case. 

The buyer and seller then present their arguments, each claiming why they deserve the deposit. The court reviews the evidence, holds hearings if necessary, and ultimately decides who gets the money. This process helps to ensure a fair resolution, allowing both parties to have their say and receive a decision based on the merits of their case.

Contact Our Jacksonville Real Estate Attorneys Today

Atlantic Coast Title & Escrow is here to simplify real estate. Reach out to us now and get clarity throughout the buying and selling process. Call us at (904) 853-5591 or fill out our form to get peace of mind for your real estate goals.