Legal Question in Real Estate Law in Illinois

Requirements for release of funds held in escrow

During June 2004 closing on undeveloped property, it was agreed that he seller would put $1500 of the proceeds received from the buyer into escrow with the buyer's attorney. The seller was to have the plat of survey ammended with the county to eliminate the requirement for ''dry wells'' from the property. If the seller accomplished that task by November 1, 2004, the $1500 would go to the seller. If the seller failed to accomplish that task prior to Nov. 1, 2004, the $1500 would go to the buyer. What does the buyer's attorney have to do to release the $1500 to the buyer as the plat of survey was never ammended with the county? What are the requirements he must meet to release the funds to the buyer?


Asked on 12/14/04, 10:25 pm

1 Answer from Attorneys
Zedrick Braden III Ainsworth & Associates PC

Re: Requirements for release of funds held in escrow

Hello. These kinds of situations happen a lot. In

my opinion, the buyer's attorney should give

written notice to the seller that he has failed

to complete the task which would entitle him to

the $1,500, and that the $1,500 is being released

to the buyer. Prior to releasing the money to

the buyer, the buyer's attorney should write the

buyer and advise him that he is entitled to the

$1,500. I suppose this money is to be used by

the buyer to correct the situation. The buyer's

attorney then would ask the buyer to sign the

receipt that he received the money. I would also

like to caution that the $1,500 to buyer may not

be the only monies that the buyer is entitled to.

In other words the buyer may decide to file a suit

against the seller for additional damages. I will

be more than happy to answer any additional

questions that you might have.

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Answered on 12/15/04, 2:25 am


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