Can a Winston-Salem escrow agent release Earnest Money Deposit w/o home seller’s written consent?

A Winston-Salem home buyer made an offer on a property with a substantial Earnest Money Deposit that was paid to the attorney acting as an escrow agent.

The buyer terminated the offer during the due diligence period,

and then sent standard form 350-T for the seller to acknowledge that the buyer is entitled to a refund of the earnest money.

The seller did not sign the form, but they also never disputed that the earnest money shouldn't be refunded. They just didn't respond.

The attorney refused to release the earnest money without signed permission from the seller.

What are the next steps for the home buyer and their agent?

If a home seller disputes the buyer’s entitlement to the EMD, even if the dispute has no basis, paragraph 1(f) of Form 2-T spells that the escrow agent must retain the money in its trust account.

However, if the seller has merely not responded, but has not disputed the buyer’s acknowledgement, then no signature is required.

The buyer agent should send an email to the listing agent stating that if the seller does not dispute the buyer’s entitlement to the EMD within 48 hours, the seller’s silence will be considered an acknowledgement that the escrow agent is authorized to disburse the entire EMD to the buyer.