Why some escrows charge a cancelation fee?
Buyers Answers

Again escrow companies are independent corporation that act as a middle party to the transaction to ensure that the contract is carried out or completed as instructed in the contract and escrow instructions. If the buyer or seller defaults, the escrow collects a a cancellation fee for the services provided during the time the escrow was open. If you are not willing to take the risk, then you should not open escrow until you are 100% satisfied that your escrow is going to close. In the real world such guarranties are not assured because there may be many factors beyond tha parties control. for expample, borroer laid off, discovery of faulty construction of property, disclousers not submitted on time, delays of signatures from parties involved, etc.