Post-Closing Escrow- Grrrrr

When you close on a house, you usually get the house, pay the money, and start paying your mortgage. Done and done.

Sometimes, in order to close on time (before your rate lock expires?), the parties have to agree to leave money "in escrow" until some triggering event.

I have had clients' money held in escrow until:

• A lightbulb was changed
• A permit was closed out
• The summer came and the air conditioner could be tested.

It's usually a pretty straight forward way to complete the main part of the deal (the sale of the house) while some minor issue is pending. If you buy a house with an open permit, you may keep $5K of your purchase price in escrow (typically with the buyer's lawyer) until the permits are closed out. If they're NEVER closed out, you get the $5K back with an eye toward closing out the permits yourself (or not).

Flexibility on minor points like this as you approach closing can be a good way to ensure the deal goes smoothly.

Brokers and lawyers in Commack, Northport, Centerport, and all over Long Island are familiar with this common process.

Don't be scared.