Lawyer as Escrow Agent

[STEPHAN]

What is the name of your state? FL

In a real estate transaction, we (the buyer) and the seller agreed that the lawyer that also did the closing holds some documents in escrow. This could be for three years or much longer.

How does it work if the lawyer passes away? Is there some kind of backup per law?

 

[adjusterjack]

You should ask the lawyer what arrangements he is making if he dies before the three years are up.

As for law, it should be easy enough to contact the state Bar and ask.

https://www.floridabar.org/

 

[quincy]

What is the name of your state? FL

In a real estate transaction, we (the buyer) and the seller agreed that the lawyer that also did the closing holds some documents in escrow. This could be for three years or much longer.

How does it work if the lawyer passes away? Is there some kind of backup per law?

Yes, there is a backup. The documents held by an attorney do not disappear on the attorney’s death.

https://www-media.floridabar.org/uploads/2021/08/Inventory-Attorney-Manual-April-2021.pdf

Every member of the Florida Bar who practices law in Florida designates another member of the Florida Bar to act as their “Inventory Attorney.” The inventory attorney is tasked with inventorying the client files held by the deceased attorney.

The inventory attorney makes sure that client files and any money held by the attorney goes back to the client.

 

[Litigator22]

What is the name of your state? FL

In a real estate transaction, we (the buyer) and the seller agreed that the lawyer that also did the closing holds some documents in escrow. This could be for three years or much longer.

How does it work if the lawyer passes away? Is there some kind of backup per law?

No, there is no such "backup per law! Nor is there a cure for those so naive as to entrust such critical affairs to other than a bonded entity as in "Licensed Escrow Agent".

Perhaps your unfamiliar with the word "embezzlement"! And the name of the once most prominent criminal defense attorney of the name, F. Lee Baily. (O. J Simpson - Sam Sheppard, The Boston Strangler, Heiress Patty Hearst, etc.) Disbarred late in his illustrious career for confusing his client's money with his own.

 

[quincy]

No, there is no such "backup per law! Nor is there a cure for those so naive as to entrust such critical affairs to other than a bonded entity as in "Licensed Escrow Agent".

Perhaps your unfamiliar with the word "embezzlement"! And the name of the once most prominent criminal defense attorney of the name, F. Lee Baily. (O. J Simpson - Sam Sheppard, The Boston Strangler, Heiress Patty Hearst, etc.) Disbarred late in his illustrious career for confusing his client's money with his own.

Attorneys frequently hold their clients money in escrow accounts. These accounts are client accounts and separate from the attorney accounts. But I think you already know that.

I am pretty sure the “back up” of which STEPHAN speaks refers to what happens to client documents when an attorney dies. The backup is having another attorney step in to handle the dead attorney’s client files so the clients do not lose ground on their cases. The case files can either be returned to the client or the client can hire another attorney and the files can be sent to that attorney.

 

[STEPHAN]

Thank you for all your responses. Just to make it clear, this is a licensed escrow agent. And this is about documents, not money.

https://www-media.floridabar.org/uploads/2021/08/Inventory-Attorney-Manual-April-2021.pdf

Great. I was looking for that!

 

[quincy]

Thank you for all your responses. Just to make it clear, this is a licensed escrow agent. And this is about documents, not money.


Great. I was looking for that!

You’re welcome, STEPHAN. Happy to help.