So if the buyer refuses to release the funds, then will the funds be stuck for ever?
In a normal escrow scenario then will the escrow arbitrate between the buyer and the seller, if a settlement is not possible then will the funds be released to the part with the most convincing prof.
Yes, but as you can see, the buyer is not interested do not release the funds, but the opposite, he is financially motivated to unlock them.
In a normal escrow scenario the escrow agent can: 1) make a
mistake (a human factor), 2) be
hacked, 3) be physically
compromised, 4)
scam the buyer and the seller (as it usually happens here) or 5) just simply
disappear (for any reason)... So, what will you choose?