For Immediate Release
June 11, 2009
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Senate Approves Bill to Improve Real Estate Law 

The State Senate yesterday approved legislation sponsored by Senator Tommy Tomlinson (R-Bucks) that would change the way consumers can receive escrow funds in real estate transactions. 

Tomlinson, who chairs the Senate Consumer Protection and Professional Licensure Committee, said current law requires that in a real estate transaction, escrow funds are tied up if a transaction is not completed and not accessible without litigation. Under the proposed legislation there would be a process for release of these funds pursuant to a written agreement.  

"Very often questions are raised about the release of escrow when a real estate deal falls through," Tomlinson said.  "This legislation would provide that escrows may be released if there is a prior agreement and the parties agree to release of some or all of the monies, or a court orders release of the monies.  This will provide clarity and protections to a process that presently ties up money and fails to give direction on how the money is distributed." 

Contact:

Fran Cleaver
(717) 787-5072