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Andrea, Esq.
Andrea, Esq., Lawyer
Category: Real Estate Law
Satisfied Customers: 12554
Experience:  I have practiced law for 25 yrs. with an emphasis on real estate, business law, criminal defense and family law.
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I PUT UP 125,000 (BEING HELD BY AN ATTORNEY IN ESCROW) TO BOND

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I PUT UP 125,000 (BEING HELD BY AN ATTORNEY IN ESCROW) TO BOND SOMEONE WHO WAS DOING A "GIFT" PROJECT FOR A TOWN. IT WAS A GIFT TO THE TOWN IN RETURN FOR ALLOWING HIM TO PURCHASE A LARGE TRACT OF LAND FOR A BIG COMPLEX. tHIS PROJECT HAS NOTHING TO DO WITH THE OTHER COMPLEX, IT COST APPROX. 2 MILLION. NOW HE HAS COME TO THE END OF THIS "GIFT" PROJECT $70,000 SHORT..THE PROJECT IS DONE BUT THE TOWN WILL NOT GIVE A C.O. TILL ALL CONTRACTORS ARE PAID IN FULL. THE PERSON WHO DID THIS PROJECT ALREADY HAS A HUGE AMOUNT OF HIS MONEY INVESTED IN THE BIG REAL PROJECT WHICH WILL HAVE LARGE INVESTORS INVOLVED, UNLIKE THE "GIFT" PROJECT. MY QUESTION IS: CAN THE TOWN USE THE ESCROW ACCOUNT TO PAY OFF CONTRACTORS WITHOUT DEFAULTING THE DEVELOPER...I AM HOPING NOT, BECAUSE WITH ALL THE MONEY HE HAS INVESTED IN THE LARGE PROJECT , IF THAT WERE THE CASE, HE WOULD CERTAINLY NOT WANT TO LOOSE HIS SEED MONEY FOR THE LARGE PROJECT , WHICH HE HAS ABOUT 500,000 INVESTED IN ALREADY...SUFFOLK COUNTY NEW YORK

Hi, My name is XXXXX XXXXX my goal is to provided you with Excellent Service,

 

 

If the individual has come up $70,000 short on another project, then the money held in escrow cannot be used to take care of the amount by which he came up short. If, however, he came up $70,000 short on the "Gift" project, then the money held in escrow can be used because that was the purpose for which the money was set up - to insure that the project was completed,

 

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Please be kind enough to rate Excellent Service" so that I receive credit for assisting you,

 

Bonus and Positive Feedback on survey is very much appreciated,

 

ANDREA

 

 

Customer: replied 3 years ago.


yes i realize that but my question is will the town have to put him in default before they can use my bond money? because the developer would not want that to happen as he has so much money involved with the large project

Customer: replied 3 years ago.


not sure you got my reply? my real question is will the town have to deem the developer in default before they can use my bond money??? i am hoping so because the developer has so much money involved in the other project, he would not want that to happen

Hi, Susan, Thank you for your comments,

 

The question you just asked can only be Answered by looking at all the municipality's documentation and what they consider a default and when they can tap into the bond, and also by reviewing the the bond's documentation as to any prerequisites before it comes into play. I apologize, but that question can only be Answered by looking at all the documentation because there is no Statute that is applicable, it is a strictly contractual issue and what the parties agreed to at the outset,

 

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Please be kind enough to rate Excellent Service" so that I receive credit for assisting you,

 

Bonus and Positive Feedback on survey is very much appreciated,

 

ANDREA

 

 

 

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