Totally agree it's legal and standard procedure in NYC. If you need an attorney feel free to contact Keith Schutzman at firstname.lastname@example.org or 917-842-2889. Please note I do not get compensated for referrals. Best of luck if I may be of service, feel free to contact me for all your real estate needs.
Licensed Real Estate Salesperson
Rutenberg Realty, NY, NY
In NY, the seller's attorney holds the money in escrow. The attorney is not allowed to release the money to the seller until closing. If something should happen and you do not close, the attorney would have to return the money to your attorney, if it is something like not qualifying for your mortgage. If you just changed your mind, the seller would be able to keep the deposit. The seller's attorney still has to hold the money in escrow until everything is settled betweed your attorney and the seller's attorney.