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You seem to be under the mistaken impression that the $20k is in the owners' possession and that they can choose what to do with it. That's not the way it works. The $20k is with a third party and not even one dollar of it can be dispensed unless either both the buyer and seller agree to the disbursement, or a court orders how to disburse the money. Moreover, the seller isn't free to just re-list the property and sell it to someone else while this matter is pending; especially if the buyer files a lawsuit and records a lis pendens against the property.
Apparently you missed the part where the $20K deposit was NOT placed with a third party. Actually, it was the very first line of the OP:
Quote:
Originally Posted by joker1979
We signed a contract to buy a house in late May and put a $20k deposit on it with the seller's attorney.
Apparently you missed the part where the $20K deposit was NOT placed with a third party. Actually, it was the very first line of the OP:
No, I saw it. What makes you think that the attorney isn't holding it in escrow? I took the OP's statement to mean that the seller selected the settlement attorney. Has it not been your experience that attorneys involved in a real estate transaction not to hold the buyer's deposit in escrow?
Frankly, your response to me is very, umm, surprising. (That's the most charitable way I could phrase that.)
No, I saw it. What makes you think that the attorney isn't holding it in escrow? I took the OP's statement to mean that the seller selected the settlement attorney. Has it not been your experience that attorneys involved in a real estate transaction not to hold the buyer's deposit in escrow?
Frankly, your response to me is very, umm, surprising. (That's the most charitable way I could phrase that.)
Quick check on NY says...
***************************
New York is different from the rest of the country in that the custom has long been for the seller's lawyer to hold the deposit money in an escrow account. In the Rocky Mountain states, for example, title companies often provide escrow services in addition to insuring the title to the property. And in California and other Western states, escrow service companies -- known as escrow holders or escrow closers -- are usually the holders of the funds.
*********************************NY Times on Escrow.
The lawyer however has much the same requirements on escrow as does an escrow company.
No, I saw it. What makes you think that the attorney isn't holding it in escrow? I took the OP's statement to mean that the seller selected the settlement attorney. Has it not been your experience that attorneys involved in a real estate transaction not to hold the buyer's deposit in escrow?
Frankly, your response to me is very, umm, surprising. (That's the most charitable way I could phrase that.)
I took it to mean that the attorney was working on behalf of the Seller. An attorney paid by and representing a Seller is not a disinterested third party.
There may be different rules in different states but, around here, I would never encourage a Buyer to give money to an attorney who represents the Seller.
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