What's the Escrowee's power? (seller's attorney)

Asked by Hexrsohexyso, 11214 Sat Jul 31, 2010

So my contract says that the Escrowee is not liable for any actions, unless not in good faith or in willful disregard or the contract. The contract also says that the downpayment shold be returned promptly ten business days after notice of termination has been given. Why is the Escrowee waiting for the seller's consent to return my money? It's been way over ten business days, and they're not liable if they return it right? Thanks!

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5
John Walin, Agent, Libertyville, IL
Sat Oct 9, 2010
In Illinois all parties, buyer and seller have to sign a release of earnest money after terminating a contract, to disburse refund to the buyer. Usually that goes without a hitch, however sometimes the seller is slow to sign the release out of spite if they think you did not bargain in good faith for some reason. Not sure about normal practices in your area, ask your broker and attorney.

good Luck...
0 votes
Derek Eyring, Agent, Lake Tapps, WA
Sat Oct 9, 2010
Escrow is a third party to your purchase and sale and they may have their own policy (most do) as to the disposition of the earnest money funds. Most all require a mutual rescission with explicit instructions as to the disposition of the funds before they do anything. Best of luck.
0 votes
Charles D'Al…, Agent, Brooklyn, NY
Sun Aug 1, 2010
The sellers lawyer will deposit the escrow or down payment in an IOLA account which is a lawyer insured account. This is put there to protect against a breach of contract from the buyer. If you as a buyer are rejected for a mortgage it would be returned to you as the buyer.
0 votes
Mitchell Fel…, Agent, Brooklyn, NY
Sat Jul 31, 2010
Dear Hexrsohexyso:

Both sides have to consent in order for the escrow to be released. This is the to make sure that both parties are satisfied that there has been no breach in the contract. If the side holding the escrow thinks there was a breach of the contract and or bad faith, they may try to keep the escrow. Then you would have a lawsuit on your hands unless some other agreement can be negotiated prior to a law suit.

You need to discuss this with your attorney! Good luck!

Sincerely,
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
Email: MitchellSFeldman@aol.com
0 votes
Anna M Brocco, Agent, Williston Park, NY
Sat Jul 31, 2010
Your question can best be answered by your attorney--ask him or her--however, if you are in breach of the contract you forfeit the downpayment, unless the seller agrees to return.
0 votes
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