What is a claim and how does it impact my escrow?

A claim is an issue brought forth after closing by the buyer or a third party. Claims can be the result of a perceived breach in the representations and warranties outlined in the transaction agreement.  When a claim is presented, a dollar amount is specified and that amount of the escrow must be set aside until the claim is resolved.  If the release date passes while there is still a pending claim, the remaining money will be distributed accordingly within 7-10 business days of the release date.  Once the claim is resolved (and assuming there are funds still to be distributed from the money set aside), a new release will occur and funds from the secondary release will be distributed within approximately 7-10 business days of the claim resolution. Your revised release amount is based on your pro-ratas as stated in the transaction agreement.

To view a typical escrow release timeline, click here.

Please contact us at support@srsacquiom.com with any additional questions.

Posted in: Clients: General Information