Seller refuses to sign mutual release agreement

2 Replies

In April 2021 my wife and I were looking into purchasing a house for her while we used to be geo bachelor’s. We were under contract escrow paid but we exited the contract due to a lead pipe and levels that we were not comfortable with. The seller negotiated to have a RO system put in however we disagreed and wanted the lead pipe completely removed or the selling price be brought down accordingly. We walked away and the seller eventually sold at the end of May 2021 and will still not sign the mutual release. I have called the title company and they will hold the funds until we get a mutual release signed. Escrow was $750 and I am not sure what to do or if it’s worth the potential legal fight.

I would offer to split it in some fashion in exchange for a signed release. Eventually the title company is likely going to file an interpleader action after deducting legal fees and expenses incurred in doing so from the deposit. You'll be fighting in court over pennies.