If a stakeholder (who is holding funds $) request mediation as a step toward resolving a dispute between 2 parties, how would that stakeholder know if the issue was actually resolved or not? Specifically, how would they know whether or not to disburse the money?? Would there be a formal agreement or confirmation from the mediator???
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Typically, an escrow agreement allows funds to be released only with the consent of all parties to the escrow or a court order. If the parties went to mediation and reached an agreement, every party to the settlement would sign a settlement agreement, or a set of escrow instructions, authorizing the release of the escrowed property as directed in the agreement. If there was no agreement, the matter would typically proceed to a trial and result in a court order.
Sometimes, an escrow agreement will provide specific different instructions for release of the funds, however. In the case of a real estate closing, the escrow officer and the officials conducting the closing are usually the same people.
It would be unusual for a escrow officer to receive any communication directly from a mediator.
