Legal Question in Real Estate Law in Illinois
We sold our house. During closing the well water test showed that we did not pass. At that time, we signed a contract that we will put 3K in an escrow account, fix the water, test it again and if it passes, the buyer and lawyer will release the escrow. The second test passed. The buyer does not want to release the money because he talked with the Health Dept and they said that they were going to wait for 6 months. What can we do?
2 Answers from Attorneys
You should check with the Health Department and see why they want to wait 6 months. If their regulations say that this is a standard procedure then you have to wait or appeal the department's judgment (administrative appeal).
Once you get cleared by the Health Department your buyer and his/her lawyer are legally obligated to release the escrow money. If they don't then they're in breach and you can try and sue them for damages according to the contract. If you pull back from the deal before you deal with the Health department then you're in breach and the buyer can sue and force you to comply with the contract even if you don't want to.
What did the escrow agreement say? The county does not have any authority regarding the disposition of the escrowed funds. The terms of the escrow agreement control.
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