Legal Question in Real Estate Law in Florida
Can the title company hold my money?
I sold a property ''As is'' in November of last year. At the closing table, an agent of the title company informed me that the permits had not been finalized with the county and they were going to hold $10,000 until I could prove the permits were indeed complete. After working with my contractors for about six months, I was able to provide the documentation requested to the title company. Although the title company admits that the paperwork is sufficient they claim that they cannot release the money to me because the buyer is requesting that the money be paid to them for roof repairs. I was not aware of any damage at the time of closing nor did the buyer mention any issues. The title company admits that this has nothing to do with the original purpose for holding the money. However, if the buyer continues to claim the money then the company plans to release it to the county and I will have to go to court and fight for it along with the buyer. Is this legal?
1 Answer from Attorneys
Re: Can the title company hold my money?
NOTE: This communication is not intended as and should not be interpreted as legal advice. Rather, it is intended solely as a general discussion of legal principles. You should not rely on or take action based on this communication without first presenting ALL relevant details to a competent attorney in your jurisdiction and then receiving the attorney's individualized advice for you. By reading the "Response" to your question or comment, you agree that the opinion expressed is not intended to, nor does it, create any attorney-client relationship, nor does it constitute legal advice to any person reviewing such nformation, nor will it be considered an attorney-client privileged communication. If you do not agree, then stop right here, and do not read any further.
It depends on the terms of the escrow agreement that should have been signed at the time of the closing. Review the agreement carefully. If it only covers the closing of the permits, then the title company cannot hold the money for any other claim of the buyers.
Having said that, despite any demands you might make, the title company may still refuse to release your monies. If this happens, you may have no choice but to file an action to get them to release your money. You should review your options with an attorney in case litigation is required.
Scott R. Jay, Esq.
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