Legal Question in Real Estate Law in Pennsylvania

Re: Money held in escrow for septic

There should have been an escrow agreement that spelled out the responsibilities and rights of each party.

Often, an escrow to take care of an issue with the property should be resolved by the seller. Such an escrow usually is money held out of the seller's proceeds of sale.

If your septic system did not pass a test, you might have taken steps to correct it so that it would pass. The escrow money may or may not have been used for that purpose, and any funds remaining in escrow should have been released to you.

The township has no responsibility to take care of this situation.

If you do nothing, the buyers probably had a right to use the money in escrow so that they would have a working septic system.

All of this should have been covered in the escrow agreement.

You should consult with a local real estate lawyer to help you finally resolve the issue.

This response is not legal advice, since I do not have all of the information that would be required, and I do not have a representation agreement with you.

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