How Escrow Disputes Are Resolved

21 Dec 2018


In most online transactions, it's never easy to trust the person on the other end of the deal because most often than not they happen to be strangers. In an online world where scams are so prevalent, it pays to be careful and one of the best things you can do when buying and selling online, is use an escrow company.

An escrow is an arrangement where a third-party hold onto something of value such as money. Despite the fact that most escrow transactions are always successful, sometimes escrow disputes do happened, and in this guide, you will learn how escrow disputes are resolved.

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Sometimes online escrow transactions might have issues that could be anything from damaged goods to products not being as described by the seller. When a disagreement arises between a seller and a buyer during an escrow period, the escrow agent is always available to help resolve the dispute. Escrow mediation at this point is necessary because the parties cannot agree with each other. Mediation is how escrow disputes are resolved by most online escrow services.

If problems escalate, an escrow dispute attorney can also help to resolve the problem. This ensures both the buyer and seller negotiate effectively and resolve the problem without any further problems. Dispute resolution in an escrow process is usually a formal process and both parties have to receive mediation from a neutral party, such as an attorney.

What If the Buyer Does Not Like the Products?

During an escrow process, the buyer usually has an inspection period, as stipulated by both parties to accept the products. If the buyer does not accept the products, they have to ship them back to the seller. The seller then has to confirm receipt of the goods, and that they are in satisfactory condition before the escrow service can refund the buyer. In such cases, the buyer is responsible for returning shipping fees, as well as the escrow fees.

Rejecting the Goods

If for any reason the buyer rejects the goods sent by the seller, the escrow service offers them a set period to try to resolve the dispute on their own. If by that time they do not come to an agreement, they are offered an additional Arbitration Commencement Period, and if by this time both parties can’t come to an agreement, the escrow service settles the disputes by refunding the buyer.

How are Transactions Cancelled?

Before both parties come to an agreement, they can easily press the cancel button and the transaction is cancelled. However, after both parties confirm the transaction and agreed to it, either of them can cancel the transaction, but this can only be done after the escrow service receives the items of value from the buyer. Escrow notifies both parties that one of them has cancelled and sends the items back to the buyer.

What happens if The Products are damaged During Shipping?

If by any chance the buyer receives damaged merchandise, they must go to the escrow service and confirm receiving the goods first, and then reject them. They must report the damaged goods immediately to both the sender and the shipping company. Shipping companies usually have a set period when reports can be made for compensation. Both parties should make a claim and submit proof of damaged products. Escrow holds on to the buyer funds through the whole process. The buyer should not re-ship the products to avoid voiding the shipping damage claim.

aerial view of containers

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What Happens When the Buyer Forgets to Accept or Decline Products on escrowkenya.com?

If by any chance the buyer does not accept or decline the products on Escrow Kenya, the escrow agent will release the funds to the seller once the inspection period is over. Of course, the buyer must have confirmed receiving the goods. If they do not complain by the time the inspection period is over, the escrow service will just send the money over to the seller.

Bottom Line

This is how is how escrow disputes are resolved by online escrow services. Most of the time, the disputes are easy to resolve, especially with the use of escrow attorneys. Of course, by the time the escrow attorney intervenes, the parties resolve the disputes by themselves.


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