Legal Question in Real Estate Law in California
Escrow dispute
My builder has submitted additional fees to escrow claming we have not closed as agreed and they are charging us $100 a day until escrow recieves docs from our lender. The total adendum is $1900 If I dispute the 1900 does it keep the entire deal from closing or just the 1900?
2 Answers from Attorneys
Re: Escrow dispute
It depends on what your contract says, and whose fault the delay is.
Re: Escrow dispute
I can't totally dispose of your issues without a lot more facts, but if the escrow holder is missing documents OR funds called for by the escrow instructions given by the parties when they were in agreement (before this problem arose), it is very likely it won't close.
You should feel free to discuss the problem with the escrow officer. While they're not attorneys, they know their business and can probably explain their internal policies and the problems with this particular escrow to your satisfaction.
Whether a builder is entitled to collect late fees or the like through escrow or whether he should collect outside escrow is a matter of contract and the escrow instructions, and the escrow officer might be able to point out the applicable language.
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