Escrow account for unmet contingencies?

What is the name of your state? Wisconsin

I posted awhile back about a home we're purchasing and was advised to get an attorney. I have done that but thought I could get some input here before contacting him about this issue (he's out of town a lot).

The property I bought was suppose to have the outside painting and landscape renovation done prior to closing. It has not been done (we haven't closed yet-and too cold for seller to have work finished). Seller mentioned putting $$ into escrow account at closing to finish work in spring. Now, seller mentioned giving us $200 to have someone finish outside painting. I got a couple of my own contractor estimates and the cheapest has come in at $1650. #1-whose responsibility is it to get estimates-mine or the sellers? (I took the incentive since I know seller just wants to pull figures out of the air for their benefit). Is seller legally obligated to escrow money equal to bids/quotes, or can they just make up imaginary numbers of what they want to pay? I haven't gotten any landscape quotes yet, but have been verbally told it could run $2000-$3000 based on my description of what needs to be done. Thanks for your help!

[nextwife]

Get three indepenedent painting quotes from reputable painting contractors (who you know will STILL be in business once temps are reliably above 50 degrees). Typically, a lender wants 125% to 150% of estimated cost to be held in repair escrows. Balance CAN go back to seller once painting contractor is paid, if escrow agreement allows. If seller balks at these estimates, try negotiating. No, they cannot just arbitrarily assign the job a cost themselves. If they want to provide estimates to you from several reliable sources that will do a comparable job for less, fine.

There isn't a lending institution involved....we took out a 1st mortgage on our current home (the property we're buying is for our daughter who will be renting it from us)....so does the protocol you mentioned still apply? Under whose name will the escrow account be under if no lending institution is involved? I know these are things my attorney can answer, but as I originally mentioned, I'd like to find out in advance how this all works.....

Thanks!

[nextwife]

Around here, it is not uncommon for the title company to hold such escrows.

[HomeGuru]

It appears that your attorney is never around when you need him/her.
Get a new one.

[nextwife]

By the way, what part of the state are you in? Milwaukee Metro?

[HomeGuru]

And what state is your attorney in, vegetative?

Nextwife: Yes, metro Milwaukee.

[nextwife]

That's where I am.

Standard practice in Metro Milwaukee is for the title insurance company to hold 125 to 150% of estimated repair cost until work is completed and lien waivers provided. Usually, the buyer obtains the bids (3), and chooses the contractor so that it is not the seller who is liable for the quality of the contractor's work. But they must be reasonable for the market place. DO get a bunch of bids. I paid $1000 for a trim painting job that some bozo tried to talk me into paying $7200 for! And it's held up well. If your title provider can't do it, come back and ask me to email you. I know another reputable title office that can hold escrow.

Nextwife: Could you email me? Your email is disabled according to the forum administrator. I can be reached at [email]smarfran@aol.com[/email].

P.S. I've been a die hard gardener for 20+ years.....happy to see you enjoy it too!

Thanks!

[HomeGuru]

Maybe the forum administrator needs to fix it.

I'm back with another question until I can reach my attorney (I can't call from work).

Our attorney has contacted seller about unmet contingencies and informed them that 150% will need to be escrowed to cover costs once sale is completed.

Seller replied that they will not escrow, they will give us approximately $300 towards unmet items. My bids have come in for a total of between $4000-$7000.

Is it illegal for them to refuse to escrow the funds for the unmet contingencies or can they get away with it?

Thanks

[nextwife]

Try having your attorney ask them to provide at least two written proposals from reputable, verifiable service providers who are willing to do this work for their $300, since they are of the opinion that's all it should cost to get that work done.

[HomeGuru]

Writer, you need to be talking to your attorney.

Can't afford to HomeGuru. I guess you could say I'm in legal counsel sticker shock.