First of all I don't think there is a seller alive who would escrow the commission.

It all depends on your contracts, and it is definitely a question for your broker or attorney, but that being said, I don't believe you are liable for a commission if the seller defaults and you don't close (in my state anyway). The seller might be, according to your contracts and you could sue, but I don't believe that you are obligated to do so. Our listing agreements say the buyer's agent gets "x" % of the sales price "if any commission" is paid.

But I am not a lawyer and I don't even play one on TV.

Well I'm closing on a property like that today.
Side note: Can you do short sales on investment property? I didn't think so.

This closing requires my seller to bring a good deal of money to the closing table, which he knew would be the case ahead of time. He said that would be acceptable.

Nothing unusual about the deal, really, except he had no additional money to credit the buyers for repairs they requested.

I certainly didn't ask him to pony up the money up front.

ManWithTheBand laid out how it works in Indiana. We have a listing that the seller knows he has to bring $ to closing. If he doesn't, no sale.