In NYC, the buyer's deposit is held in the seller's attorney's escrow account - not the buyer's attorney's. This is a critical structural advantage: your attorney controls the funds. If a dispute arises, the buyer must initiate legal action to recover the deposit rather than simply directing their own attorney to return it. Confirm deposit receipt in writing within 48 hours of contract execution.
This article provides general educational information only. It is not legal, tax, financial, insurance, compliance, housing, brokerage, or professional advice. Rules, tax rates, obligations, enforcement practices, and market conditions vary by property, building, contract, municipality, and jurisdiction, and they change. Sellers should consult a qualified attorney, CPA, or other appropriate professional before making decisions based on their specific situation.
From the seller playbook: Earnest Money Risk Protection
This is general information, not legal, tax or accounting advice. Every situation is different. Talk to a licensed attorney, accountant or tax professional before you act.
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