How to prod escrow company to release my funds?

Question

I, the buyer, backed out of escrow within allotted time. I paid my cancellation fee but escrow is not willing to release my funds until the seller pays their cancellation fee. Question: how can I push escrow ( complains, small claims, lawyer letter) to release my funds?

I am in California.

Answer 1

Find out the local laws. You will find that most escrow companies are owned by attorneys. Call another company to find out what you can do. A demand letter from a real estate attorney will usually work. If not you can always contact the California Department of Financial Institutions. Heres the link: www.dfi.ca.gov

Answer 2

They can't hold you deposit hostage until the seller pays their fee. However, I'm wondering what the escrow instructions state. If you are the one that backed out then you probably will be responsible for 100% of the cancellation fee. You need to read over what you signed. If the escrow instructions state that buyer and seller are to split the fee in half regardless of who is canceled the contract then the title company needs to refund you your amount. Put the title company on notice that they need to comply within a specific time frame - say give them 5 days from the receipt of your instructions or you will file a complaint with the BBB and state banking.