Can a title company hold funds after closing?
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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 4 years 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.
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