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Interpleader

DEFINITION

Civil procedure that grants a plaintiff who is holding property on behalf of another party the right to bring legal suit to determine the legal owner of the property.

EXPLANATION

Impartiality is a very important concept when determining who is right and wrong. In the context of real estate transaction, impartiality is imperative to determine whether a buyer or seller is in the right regarding something in a transaction.

Being impartial is the main reason an escrow company is used for a real estate transaction. Having a third party that acts as a middleman with no preconceived obligations is imperative to the success of a given transaction. In the event a buyer or seller presents conflicting information, the escrow agent cannot follow the instructions authorized in writing by all parties.

In the event there is a conflict between parties, the escrow agent or company may bring forward an interpleader to help resolve the issue. In many instances where a dispute is present, a solution may not be imminent; however, the interpleader may call to question certain actions of either party.

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