Harrisburg – Legislation was signed into law today sponsored by Senator Tommy Tomlinson (R-Bucks) that would change the way consumers may receive escrow funds in real estate transactions.
Tomlinson, who is Chairman of the Senate Consumer Protection and Professional Licensure Committee, said current law requires that in a real estate transaction, escrow funds are tied up when a real estate deal is not completed, then the money is not accessible to the parties without litigation. Under new law these funds may be released pursuant to a written agreement.
“Very often questions are raised about the release of escrow when a real estate deal fails,” Tomlinson said. “This legislation will provide that escrows may be released if there is a prior agreement and the parties agree to the 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.”