I am selling the business in NJ and the buyer does not have an attorney. The buyer wants his NY attorney to be an escrow holder. Is it permi...

Question

I am selling the business in NJ and the buyer does not have an attorney. The buyer wants his NY attorney to be an escrow holder. Is it permissible in NJ? Thank you

Answer

Generally, from a seller's point of view, it's a very BAD idea to let the buyer's attorney act as escrow. As far as the state issue, it is common for attorneys from different jurisdictions to act as escrows.

I do have to note that your question was unclear as to who does not have an attorney. Without sounding contrived, if you do not have an attorney and the buyer does have an attorney then you are putting yourself in a very compromising position! You really should consider hiring a business attorney, especially since you are selling your livelihood and considering to put some of the payment in escrow and risk loosing control over it.

If you have not retained an attorney I'm sure that you were concerned about costs, so I invite you to call me and chat a bit at no cost to you. I will be able to get a sense of what would be the cost involved and you can determine for yourself. If you do have an attorney and need a second opinion again I'd be happy to chat as well.

Roman R. Fichman, Esq.

www.TheLegalist.com │ @TheLegalist

email: Info (@) TheLegalist (dot) com

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Disclaimer: This post has been written for educational purposes only and was not meant to be legal advice and should not be construed as legal advice or be relied upon. No intention exists to create an attorney-client relationship or any other special relationship or privilege through this post. The post may contain errors, inaccuracies and/or omissions. You should always consult an attorney admitted to practice in your jurisdiction for specific advice. This post may be deemed as Attorney Advertising.

Answer

You need a lawyer. The buyer's attorney will do whatever he can for the buyer, that is his job. You need someone to protect you.

Give me a call, come in and see me. No charge for the consultation. We can take it from there.

Robert Davies, Esq.

201 820 3460