If I am renting back my house from buyers and they want a security deposit, how can I set up an escrow account for those monies?
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If I am renting back my house from buyers and they want a security deposit, how can I set up an escrow account for those monies?
Real estate agent won’t do it.
Asked on August 17, 2011 Pennsylvania
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
If you had a formal escrow company handling the sale of your home to the buyers that you are now renting from, then you should use the very same escrow company that handled the sale to handle the monies for the security deposit desired by the new owners.
If the security deposit is not a large amount, $1,000 or less, the costs of setting up an escrow for this amount may not justify what you desire. With most leases and rentals, the security deposit is typically given to the landlord by the tenant and returned at the end of the term if there are no damages needing to be taken care of.
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