What will an escrow agent do if both parties cannot agree on the disposition of funds?

An escrow agent acts as a neutral third party in a transaction, holding funds until the transaction conditions are met. If the parties involved cannot agree on what should happen with those funds, the escrow agent cannot simply choose sides or act based on one party's wishes.

Filing an interpleader action with the court is the correct course of action in this scenario. This legal process allows the escrow agent to seek a resolution from the court regarding the ownership of the funds, relieving the agent of liability while ensuring that the funds are distributed appropriately based on a judicial decision. This action protects the interests of all parties involved and follows legal protocol, ensuring a fair resolution without further complicating the situation.

While settling disputes or giving advice may seem like potential solutions, they do not apply to the role of the escrow agent in this context. Involving the court is a structured approach to resolving disagreements that cannot be settled informally.