What legal document must an escrow agent obtain from all involved parties to protect themselves from liability when a transaction is cancelled?

An escrow agent must obtain a signed mutual cancellation agreement from all parties involved in the transaction to protect themselves from liability. An escrow agent is a neutral third party who holds funds or documents until specific conditions are met, ensuring a fair exchange between a buyer and a seller. When a transaction is cancelled, the escrow agent faces the risk of being sued if they release the ....