Castillo

Plaintiffs agree to purchase a mobilehome. The defendant was the escrow agent for the sale. Health and Safety Code section 18035, subdivision (f), requires the escrow agent for a mobilehome sale to hold funds in escrow upon receiving written notice of a dispute between the parties to the escrow. The escrow instructions provide that escrow shall close when all conditions have been met, unless the escrow company receives written demand not to complete the escrow.

Plaintiffs do not give escrow company such written demand, but while escrow is pending, plaintiffs send to escrow company a copy of their letter to seller, detailing their complaints about structural defects in the mobilehome. Escrow company closes escrow and disburses funds deposited by plaintiffs to sellers.

Plaintiffs may proceed in their action against the escrow agent because escrow company had received written notice of a dispute between plaintiffs and the seller. We therefore reverse the trial court which granted summary judgment to defendant escrow agent.

FACTS

Ron and Lavina Castillo agreed to purchase a new mobilehome from Advantage Homes (Advantage) in August of 2003. The Castillos rented a space in…