Can a title company hold funds after closing?

Get Legal Help Today

 Secured with SHA-256 Encryption

Can a title company hold funds after closing?

I sold a property on May 31st. On June 3rd the buyer raised an issue about a repair that was done. Now the title company is holding my disbursement because of this. I made the repair, no issue was raised until after closing. Can the title company hold my funds?

Asked on June 3, 2019 under Real Estate Law, Florida

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 1 year ago | Contributor

Yes, they can and in fact must, if the buyer rasised an issue: they are not allowed to disburse the funds without the consent or agreement of both parties or a court order to do so, since to disburse the funds if the other party has a legitimate issue or claim is to harm or prejudice that party's rights. If you and the buyer cannot work this out, your recourse would be to file a lawsuit seeking a court order for the release of the funds; if you could in the suit convince the court that the funds should be sent to you, the court can order that to happen.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption