Legal Question in Real Estate Law in New York

Re: attorneys escrow account

Usually the parties would place a time provision in the escrow agreement. If there is no time provision, the time would be a reasonable period. Reasonable is determined by the alleged damage.

If a reasonable period has passed and no notification was received from the purchaser, the seller may demand return of the money. If the demand is ignored, the seller may commence a declaratory action to compel the escrow agent and the purchaser to release the money. A declaratory action must be commenced in the Supreme Court.

Mike.

Re: attorneys escrow account

There is no set time period of how long an attorney can hold money in his escrow account. The attorney should only retain the money as long as it takes him/her to determine who it should be distributed to based on the agreement made between the parties.