If I am renting back my house from buyers and they want a security deposit, how can I set up an escrow account for those monies?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If I am renting back my house from buyers and they want a security deposit, how can I set up an escrow account for those monies?
Real estate agent won’t do it.
Asked on August 17, 2011 Pennsylvania
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If you had a formal escrow company handling the sale of your home to the buyers that you are now renting from, then you should use the very same escrow company that handled the sale to handle the monies for the security deposit desired by the new owners.
If the security deposit is not a large amount, $1,000 or less, the costs of setting up an escrow for this amount may not justify what you desire. With most leases and rentals, the security deposit is typically given to the landlord by the tenant and returned at the end of the term if there are no damages needing to be taken care of.
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.