Have you ever wondered what happens to the earnest money deposit when residential transactions fail to close? The answer is found in a piece of legislation created by the State of Washington called the Interpleader. Intending to resolve uncertainties surrounding the proper disposition of earnest money deposits, this process was clarified for SeattlebyDesign, by one of our favorite Title & Escrow companies, and we felt obliged to share it with you. Note that earnest money can be held by title companies, escrow agents, and real estate licensees.
