Legal Question in Real Estate Law in Connecticut

Re: Deposit withheld after breach of contract

He can hold it until a judge issues an order telling him to release it, and he'd be smart to do so - if only to avoid his client suing him for releasing it without authorization.. If it's under $3500, go to small claims court. If more, go to Superior Court. I doubt the lawyer will fight the lawsuit, he just wants to cover his rear end. It will cost you about $800 - $1000 to do the lawsuit (that includes the lawyer's fee), but a few hundred of it will be recoverable as costs.

Re: Deposit withheld after breach of contract

Unfortunately, the attorney can hold the escrow. Moreover, it would be wise of him/her to do so until s/he (the other attorney) receives express authorization from the seller to release the funds.

If I were in your shoes I would send a demand letter via certified mail to both the breaching party/seller and the other attorney. You should state in the letter that they breached the contract and that you want your escrow deposit refunded by a certain date ( give them 2 weeks just to be nice). If two weeks goes by and you still haven't gotten your money; then, send them another letter stating that if you do not receive your payment by a certain date (this time I would give them about 1 week)that you will be forced to take them to court. If they still don't pay you then you have to get a lawyer (unless you are in small claims court). Your lawyer will most likely sue for the money and/or put a lien on the property for the debt owed.

The reason that you should write the demand letter (besides the obvious one that you just want to get your money back) is that it would be prudent for you start a paper trail so that if your case does go to court your attorney (or, you representing yourself, if this case is a small claims case)can show the court;1- that you had a binding contract, and 2- that you made two demands to get your money back before you brought the case to court.

Good Luck,