Sometimes things do not work out with the first potential buyer and unfortunately escrows and contracts cancel. In those cases, escrow will require a mutually signed cancellation of contract which instructs your escrow officer to cancel the escrow.
Once escrow receives the mutually signed cancellation of contract form signed by both buyer and seller, the escrow officers will generate their own Cancellation Instructions which will also require the buyer and seller signatures in order to cancel the escrow. Escrow can only be cancelled, and funds on deposit can only be disbursed, upon escrow holder’s receipt of the mutually signed Cancellation of Contract from the agents, and the mutually signed Escrow Cancellation form, especially if there are any funds on deposit.
The Escrow Cancellation form will detail how the funds currently on deposit with escrow will be disbursed, taking into account payment for any applicable fees or charges incurred during the escrow (such as messengers fees or overnight costs), including potentially a cancellation fee if incurred.
Please contact me if you have any escrow questions, I’d be happy to help answer them for you!