Puleo & Puleo Attorneys at Law

I represented Mr [redacted] in his sale of [redacted] ** His property had a septic system, and the law in Erie County is that any property that has a septic system must have that system tested by the County Health Department before the property can be sold However, because the property was sold in the wintertime (a time when the County cannot conduct the required testing) a $10,escrow was required and held back from his sale proceeds at closing to ensure that the system would be in working order when the County could eventually come out an test the system A copy of the septic agreement is attached for your records My office acted as the Escrow Agent under the terms of the Agreement, which is the role the Seller's attorney plays when a septic escrow is required That being said, in my role as escrow agent, I am not acting as the attorney for the Seller, but as the escrow agent governed by the terms of the Escrow Agreement The Agreement specified that the testing needed to be done by May 15, 2017, but it did not contain language that allowed my office, as escrow agent, to unilaterally release the escrow deposit back to the Seller should the testing not occur by the 15th Paragraph of the Agreement specifies when the deposit can be released and that paragraph only allows the deposit to be released once the County's Certificate is issued or to pay for repairs to the system should those be required When the 15th came and went and no test results were presented by the Buyer's attorney, I notified the Buyer's attorney of my intention to release the funds back to the Seller In response to that notification, I received the attached letter from the Buyer's attorney demanding that I keep the funds in escrow and not release them back to the Seller My response, now acting as Seller's attorney, and not as escrow agent, was to say that we would wait no longer than May 31, 2017, and that on June 1, 2017, I would be releasing the funds to the Seller I understand and can sympathize with MrStartek's frustration, but his aggressive attitude and unwillingness to understand that I cannot do what he wants, just because he says so, is making a challenging situation even more difficult The purpose of the septic escrow is to protect the Buyer and the County and to ensure that the septic system at the subject property is in working order and satisfactory to the County inspectors Within reason, the Seller needs to accommodate the Buyer and the County to allow for the system to be tested and for any repairs, if necessary, to be made to the systemWhether or not the escrow money is ultimately released to Mr [redacted] prior to the inspection, he remains responsible to repair the system should the County find fault during their inspection For that reason, it is in everyone's best interests for the escrow deposit to stay where it is, in escrow, until the system can be tested I have been told by the Buyer's attorney that they are working to get the test done ASAP and they will have the results to me as soon as they can Please let me know if I can add any more to this matter Sam Puleo

I have reviewed the response made by the business in reference to complaint ID [redacted] , and have determined that this does not resolve my complaint For your reference, details of the offer I reviewed appear below Regards, [redacted]

I have reviewed the response made by the business in reference to complaint ID [redacted], and have determined that this does not resolve my complaint.  For your reference, details of the offer I reviewed appear below.  Regards,  [redacted]

I represented Mr. [redacted] in his sale of [redacted].   His property had a septic system, and the law in Erie County is that any property that has a septic system must have that system tested by the County Health Department before the property can be sold.  ...

However, because the property was sold in the wintertime (a time when the County cannot conduct the required testing) a $10,000.00 escrow was required and held back from his sale proceeds at closing to ensure that the system would be in working order when the County could eventually come out an test the system.   A copy of the septic agreement is attached for your records.  My office acted as the Escrow Agent under the terms of the Agreement, which is the normal role the Seller's attorney plays when a septic escrow is required.   That being said, in my role as escrow agent, I am not acting as the attorney for the Seller, but as the escrow agent governed by the terms of the Escrow Agreement.  The Agreement specified that the testing needed to be done by May 15, 2017, but it did not contain language that allowed my office, as escrow agent, to unilaterally release the escrow deposit back to the Seller should the testing not occur by the 15th.  Paragraph 7 of the Agreement specifies when the deposit can be released and that paragraph only allows the deposit to be released once the County's Certificate is issued or to pay for repairs to the system should those be required.  When the 15th came and went and no test results were presented by the Buyer's attorney, I notified the Buyer's attorney of my intention to release the funds back to the Seller.   In response to that notification, I received the attached letter from the Buyer's attorney demanding that I keep the funds in escrow and not release them back to the Seller.  My response, now acting as Seller's attorney, and not as escrow agent, was to say that we would wait no longer than May 31, 2017, and that on June 1, 2017, I would be releasing the funds to the Seller.  I understand and can sympathize with Mr. Startek's frustration, but his aggressive attitude and unwillingness to understand that I cannot do what he wants, just because he says so, is making a challenging situation even more difficult.  The purpose of the septic escrow is to protect the Buyer and the County and to ensure that the septic system at the subject property is in working order and satisfactory to the County inspectors.  Within reason, the Seller needs to accommodate the Buyer and the County to allow for the system to be tested and for any repairs, if necessary, to be made to the system. Whether or not the escrow money is ultimately released to Mr. [redacted] prior to the inspection, he remains responsible to repair the system should the County find fault during their inspection.   For that reason, it is in everyone's best interests for the escrow deposit to stay where it is, in escrow, until the system can be tested.   I have been told by the Buyer's attorney that they are working to get the test done ASAP and they will have the results to me as soon as they can.  Please let me know if I can add any more to this matter.  Sam Puleo

Problem has been resolved.