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Seller Attorney/Sellers won't let us use escrow money for repairs

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qxixp

Junior Member
What is the name of your state (only U.S. law)? New York

I bought a house from a divorced couple in the beginning of the month. This is our first house and the whole thing is a mess. Sellers left so much junk in our yard/attic even though they promised to take care of them and clean up the house before we move in. They didn't maintain the yard for at least 3 months, front yard on right side of the house looks like a waste land, and the fences/doors are broken. There is only $1,500 in the escrow account and we are requesting to use the total fund to repair everything and clean up the junk. The yard alone costs about 800 - 900 due to the amount of soil missing. However, the sellers and their attorney won't let us use the fund and only want to give us $50 to repair the door(seriously!). Any suggestions? My dad and I have been cleaning the junk (at least 20 bags (big black plastic bag ) of junk were already removed). This is frustrating and we won't release the escrow money, but is there anything we can do to get that money for the repair?
 


Zigner

Senior Member, Non-Attorney
What is the name of your state (only U.S. law)? New York

I bought a house from a divorced couple in the beginning of the month. This is our first house and the whole thing is a mess. Sellers left so much junk in our yard/attic even though they promised to take care of them and clean up the house before we move in. They didn't maintain the yard for at least 3 months, front yard on right side of the house looks like a waste land, and the fences/doors are broken. There is only $1,500 in the escrow account and we are requesting to use the total fund to repair everything and clean up the junk. The yard alone costs about 800 - 900 due to the amount of soil missing. However, the sellers and their attorney won't let us use the fund and only want to give us $50 to repair the door(seriously!). Any suggestions? My dad and I have been cleaning the junk (at least 20 bags (big black plastic bag ) of junk were already removed). This is frustrating and we won't release the escrow money, but is there anything we can do to get that money for the repair?
You aren't going to get paid for your own time in cleaning up.

As was asked above, what does your contract indicate the escrow account is to be used for? Frankly, an escrow account, while not entirely uncommon, isn't usually even in a purchase contract for a house.
 

qxixp

Junior Member
You aren't going to get paid for your own time in cleaning up.

As was asked above, what does your contract indicate the escrow account is to be used for? Frankly, an escrow account, while not entirely uncommon, isn't usually even in a purchase contract for a house.
The inspector only focused the main parts of the house, such as pipes, roofs, and etc... He didn't pay attention to the fences and doors.
The contract says that the seller has to deliver the property vacant and in broom clean condition by Nov 1, and the seller will need to pay the Purchaser the sum of 150 per day and every day afterwards if the seller fails to deliver the premises vacant and in a broom clean condition to the purchase. and that the seller needs to cover the cost of repairing the door and the fence upon presentment of the receipts. Since the yard wasn't mentioned in the contract, we probably won't be able to get the money for the repair.
 

Zigner

Senior Member, Non-Attorney
The inspector only focused the main parts of the house, such as pipes, roofs, and etc... He didn't pay attention to the fences and doors.
The contract says that the seller has to deliver the property vacant and in broom clean condition by Nov 1, and the seller will need to pay the Purchaser the sum of 150 per day and every day afterwards if the seller fails to deliver the premises vacant and in a broom clean condition to the purchase. and that the seller needs to cover the cost of repairing the door and the fence upon presentment of the receipts. Since the yard wasn't mentioned in the contract, we probably won't be able to get the money for the repair.
Have you presented your receipts for the repair of the door and fence?
 

FlyingRon

Senior Member
ZIG: I think by escrow he's talking about the earnest money being held in trust rather than the lender's escrow impounds for property taxes and insurance.

The answer is that money isn't "up for grabs". The settlement takes that earnest money plus whatever other funds are provided (typically from the lender) and doles it out as documented on the HUD-1 as specified by the purchase contract.

The question is have you closed yet?
 

qxixp

Junior Member
ZIG: I think by escrow he's talking about the earnest money being held in trust rather than the lender's escrow impounds for property taxes and insurance.

The answer is that money isn't "up for grabs". The settlement takes that earnest money plus whatever other funds are provided (typically from the lender) and doles it out as documented on the HUD-1 as specified by the purchase contract.

The question is have you closed yet?
yes, we closed the house. We haven't represented the receipts yet, but the problem is that they are not asking for receipts or proof of repairs. They simply refuse to release the fund for any repairs and all my lawyer can do is to hold the fund in the escrow account. Is there a place where I can file a complain on this lawyer? since the contract clearly says that the seller is responsible for all repairs and junk in our property.
 
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qxixp

Junior Member
Why is there escrow money?

What does the contract say about that?
The contract says that the seller has to deliver the property vacant and in broom clean condition by Nov 1, and the seller will need to pay the Purchaser the sum of 150 per day and every day afterwards if the seller fails to deliver the premises vacant and in a broom clean condition to the purchase. and that the seller needs to cover the cost of repairs in the even that the house is not delivered in accordance with the terms of the contract of sale. And the escrow money is there to use as funds for repair and any fees described above.
 

Zigner

Senior Member, Non-Attorney
The contract says that the seller has to deliver the property vacant and in broom clean condition by Nov 1, and the seller will need to pay the Purchaser the sum of 150 per day and every day afterwards if the seller fails to deliver the premises vacant and in a broom clean condition to the purchase. and that the seller needs to cover the cost of repairs in the even that the house is not delivered in accordance with the terms of the contract of sale. And the escrow money is there to use as funds for repair and any fees described above.
You have to fix the stuff and then submit receipts.
 

qxixp

Junior Member
You have to fix the stuff and then submit receipts.
Ok, including the junk in the house? There are still some there. According the our lawyer and based on the their conversation, the sellers and their lawyer will not easily release the fund even if we repair everything and submit the receipts. If that is the case, what actions can we take?
 

TheGeekess

Keeper of the Kraken
Ok, including the junk in the house? There are still some there. According the our lawyer and based on the their conversation, the sellers and their lawyer will not easily release the fund even if we repair everything and submit the receipts. If that is the case, what actions can we take?
What did your attorney say when you asked him/her/it your questions? :cool:
 

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