Legal Question in Real Estate Law in Georgia

Repair Escrow Accounts

We are closing on a house, and the seller is providing $3000.00 in an Escrow Account for needed repairs. Is it legal for the Escrow account to be placed in our name to be drawn from at our convenience to pay contractors of our choosing, or are we required to place the account under a specific vendor at closing? We were hoping to be able to do repairs ourselves and possibly (if legal) use the remainder for upgrades to the property. Any advice is appreciated. Thanks!


Asked on 7/26/06, 3:02 pm

2 Answers from Attorneys
Scott Riddle Law Office of Scott B. Riddle, LLC

Re: Repair Escrow Accounts

What are the terms of the escrow agreement? In this situation, the key is disclosure of these agreements in the documents, particularly the HUD-1. It is not unusual for repair money to be put in escrow, with the terms of the escrow being spelled out clearly in the agreement. Why not just ask for a reduction, or that the money be given directly to you at closing (again, very important that this be correctly documented on the HUD1)?

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Answered on 7/26/06, 3:09 pm
Charles W. Field Charles W. Field, Attorney at Law

Re: Repair Escrow Accounts

You can do whatever you and the seller agree to. Nail down the terms and contact the real estate agent to put the terms into an addendum to the contract. Alternavitely, contact the closing attorney, who can handle this.

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Answered on 8/01/06, 5:16 pm


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