Posted by John Merchant on July 05, 2006 at 15:00:23:
Although it might have looked to you like a real escrow, with ind. and neutral escrow officer, I’ll guarantee that lawyer would have another version and you’d be wasting time and money going after him/her.
Next time, YOU make sure you’ve got ind. & neutral & real escrow set up…NEVER using other guy’s lawyer.
Escrow money distributed without consent - Posted by JMike
Posted by JMike on July 05, 2006 at 09:58:20:
My buyers walked away from a deal 65 days after signing and had “walk away” contingencies through 60 days. They only verbally told me the deal was off (on day 65)… after not receiving anything written, I sent a “end of contract and distribution of escrow form” and was told that their attorney (who was holding the escrow) returned 100% of the escrow back to the them!!!
My question is … are the buyers involved or is my dispute solely with the escrow holder?
I apologize if this is too specific for the forum.
Re: Escrow money distributed without consent - Posted by Natalie-VA
Posted by Natalie-VA on July 10, 2006 at 13:37:38:
JMike,
Please keep us updated on how this turns out.
Our local contract gives the escrow holder 3 ways to disburse earnest money if the transaction is not consumated:
It’s customary in my area for one of the real estate companies to hold the deposit. I’ve NEVER seen any of them choose number 3 even when it’s obvious one party defaulted.
Thanks for sharing with us.
–Natalie
One possible arrow for your quiver - Posted by John Merchant
Posted by John Merchant on July 05, 2006 at 23:34:39:
If you have a shred of evidence (letters, anything in writing)from that lawyer to the effect that he was representing you too…that could be a powerful club against him…as he would have had an irreconcilable conflict of interest since he already represented the buyer…and the law and his ethical rules as a lawyer would not permit such a thing.
So if you have any such documentation, have your lawyer have a little informal, off the record chat with him and I think he might well decide to write you his own check to make up for his client’s getting your money…since he absolutely doesn’t want any complaint going to the Bar Ass’n about his ethical breach.
Re: Escrow money distributed without consent - Posted by John Merchant
Posted by John Merchant on July 05, 2006 at 13:46:40:
“my buyers”…don’t know what this means.
What was your relationship to them?
Were you their RE agent or what?
Or were you the seller who’s now lost their earnest money?
“too specific”…obviously not.
And what is your complaint?
One comment I’d make on escrow being their lawyer…I’d never do a deal whereby any other party is using his/her own lawyer as that lawyer could not be a truly neutral, independent escrow agent.
Once a lawyer represents a person, he can never again be in any opposing, or even neutral position, with that client…so your letting this person be the escrow agent was a big mistake.
Re: Escrow money distributed without consent - Posted by JMike
Posted by JMike on July 10, 2006 at 15:50:19:
Thanks for the input … that is consistent with my experience. Currently I am having difficulty getting to the top of my attorney’s priority list to send the buyer’s attorney a letter … unbelievable … I will certainly let folks know what happens.
Re: One possible arrow for your quiver - Posted by JMike
Posted by JMike on July 06, 2006 at 08:41:21:
Thanks for the follow-up … it is clear that he was not my attorney … however, the sales contract has a few things in my favor …
Deposit held in escrow by XYZ (Escrow Agent) in the amount of $20,000.
…XYZ is in place of actual attorney’s name … but the term (Escrow agent) is in the contract.
Any closing agent or escrow agent receiving funds or equivalent is authorized and agrees by acceptance of them to deposit them promptly, hold same in escrow and, subject to clearance, disburse them in accordance with terms and conditions of this Contract.
My attorney will be contacting the offending party shortly to figure out how we resolve the matter. Thanks for your guidance and thoughts on this matter. I have never had escrow disbursed without a signed release …
Re: Escrow money distributed without consent - Posted by JMike
Posted by JMike on July 05, 2006 at 14:22:14:
Thanks for the response and sorry for the confusion … “my buyers” should be “the buyers” … I am the seller … both buyer & seller were represented by realtors … escrow held by the buyer’s attorney (yes, conflict of interest) … my complaint is that the buyers were in breach of the contract (verbally cancelled sale 5 days after contingency period ended) and I am, at present, out the earnest money. Legally, I do not see how an escrow agent can distribute funds without instructions signed by both the seller and buyer. How should I go about getting the earnest money … seems to me it is the escrow agent that should be obligated to pay me the earnest money amount and have the problem collecting from the buyer.
Re: One possible arrow for your quiver - Posted by DoubleJ
Posted by DoubleJ on July 06, 2006 at 14:39:15:
Let us know how it goes! Im truly excited to find out.