Legal Question in Real Estate Law in New Jersey

escrow account

At the closing of a house sale an escrow account was set up to cover any expenses for a specific issue for the new buyer. In my case the escrow was in place for over a year. Should interest be paid on this since the excrow holder made interest on this money??


Asked on 12/29/08, 7:13 am

1 Answer from Attorneys
Walter LeVine Walter D. LeVine, Esq.

Re: escrow account

I do not know what the arrangement was with the escrow holder as to interest payment. If the escrow holder was an attorney, holding the escrow at interest in an interest-bearing attorney trust account, any interest belongs to the client. If the funds were held in an attorney's IOLTA trust account, the interest earned goes to the Bar Association to fund programs like the Public Defender, and the attorney gets nothing and neither does the client. This should have been worked out as part of the escrow arrangement when created.

Read more
Answered on 12/29/08, 11:51 am


Related Questions & Answers

More Real Estate and Real Property questions and answers in New Jersey