Expert: Michael Brotherton - 9/16/2008

Question
Here's my situation.  I was 1/2 owner of a property that got sold in June.  Escrow accts were made for repairs and money claimed to be owed to a third party.  It's the middle of Sept. now and no resolution has come into play.  The agreement signed was for 30 days, when a solution should have come about, but nothing has.  It's been back & forth w/ the same things.  One escrow is for $20k and the other is for appx. $15k.  Why is it becoming difficult to get this money out of escrow when nothing has been done in the 30 day alloted?  We're being told to wait it out. I believe that if no agreement is in play or close to it, then disburse the funds to each party accordingly, and if a lawsuit is bound to happen to either party, then that'll become a separate issue that we'd have to handle eventually.  Are there Statute of Limitations on escrow accounts?  I feel like I keep getting the run around from my attorney, and it's extremely frustrating.  Can we, the sellers of the house, demand that the moneys be released being that nothing has come into play to resolve this matter?

Thank you for your help.

Brooklyn, NY

Answer
Tough questions. The title company or attorney is required to disburse the funds according to the contract. The lender will normally require repairs be done before funds can be released if it is a condition of the loan. Also, if payment of a debt is required by the lender from the proceeds these funds must be paid accordingly.

I am curious about the statement "money claimed to be owed to a third party". I'm not sure what you mean by that. Was it a debt you owed or a lien against the property?

Without actually seeing the purchase agreement or knowing more about the deal it is difficult to determine what can be done.

As a seller you have no continueing interest in the property and it really doesn't matter what they do with the money but if they are holding up sale proceeds to you then I can see the urgency here.

I would be happy to discuss your situation further if you would like to give me a call. 937 372 8581.