[WSBARP] Second Escrow?

[Alan Middleton]

HC is selling three construction projects in mid-construction.  Sub who
caused massive delays (and damages) filed substantial lien.  There are
enough proceeds to provide cash collateral for a bond to deal with the lien,
but the title company refuses to close without a bond (i.e., refuses to send
money to the surety before the bond is issued) and the surety won't issue
the bond without the money.  Chicken and egg problem.  Anyone dealt with
something like this before?  I assume with buyer's consent to take title
subject to the lien we could set up a second escrow or trustee or something
to receive money, send it to the surety, get and record the bond, but I have
no idea who might act as such a second escrow or trustee.  All creative
solutions very much welcomed.  Humorous but ineffectual solutions also
welcomed. 

 

Alan S. Middleton

Law Offices of Alan S. Middleton PLLC

10605 SE 240th St. PMB 444

Kent, WA 98031

Tel (206) 533-0490

 <mailto:alanscottmiddleton at comcast.net> alanscottmiddleton at comcast.net

 <http://www.alanmiddletonlaw.com/> www.alanmiddletonlaw.com

 

 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20180727/9f47d731/attachment.html>