Legal Question in Real Estate Law in New Jersey

Re: Escrows

Unless all the payments are to be made very quickly, I don't like the arrangement that you describe at all. Although the attorney may be honest and obligated to comply with the ethical rules, your partner is not. So long as the sale is not a matter of public record, others can acquire and interest in the land unaffected by the sale and your current interest in the land. That is safe for only short periods. A more conventional arrangement would be for you to take back a mortgage on the property and give a deed which would both be filed with the County Clerk. That way, a subsequent purchaser is on notice as to both the ownership and the encumbrance.

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Re: Escrows

It is normal for an attorney to hold the deed "in escrow" pending your payments being made in full. Believe it or not, attorney's are held to certain standards of conduct and they cannot do anything other than what they say they will do. Many times there is an "escrow agreement" stating the terms of the escrow - sometimes it's just done as a matter of course. You can rest assured that your deed is safe and the attorney will release it when he or she is supposed to release it.