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Q: My firm is representing a buyer in a transaction, and we are holding the EMD. The deal has fallen apart, though both parties accuse the other of violating the terms of the contract. It’s not clear to me who is entitled to receive the EMD. What should I do? 

A: Virginia Code section 54.1-2108.2 provides that in such a situation, where the parties cannot agree, and it is not clear who is entitled to the funds, the broker holding the EMD may interplead the funds into the court with jurisdiction. Filing an interpleader allows you, the party holding the funds, to pay the funds into the court. It is then left to the court, not you, to decide which party is entitled to the funds. 

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