Escrow Fund

Division Of Student Affairs; Western Michigan University

ESCROW IS...

• A fund established at the Off-Campus Life Office into which tenants may pay their rent.
• A place to put the rent payment when your rental unit does not meet the minimum housing standards.
• A place to put the rent payment when the landlord has not lived up to the terms of the rental agreement.
• The best way to withhold rent and be protected against eviction. (This does not mean that your landlord is prevented from taking you to court but it does show good faith on your part and that the money is in a safe place.)
• That which is delivered to a third person (mediator), to be delivered by him to someone else (landlord) only upon the performance or fulfillment of some conditions. The payment into an escrow fund places it beyond the control of the grantor (tenant).

ESCROW IS USED...

• After verbal and written attempts on the part of the tenant have failed to get the landlord to live up to terms of the rental agreement.
• As a way of getting repairs accomplished that the landlord refuses or neglects to do.
• After, or often along with, a request for mediation.
• Generally when an inspection of the premises has taken place or violations of the rental agreement are clearly evident.

THE PROCEDURE...

1. The tenant requests mediation and also signs an escrow agreement.
2. The rental payment is placed in escrow on or before it is due to the landlord.
3. The landlord is contacted by the Off-Campus Life Office and a settlement is sought.
4. When repairs are completed and/or the conditions of the lease are met, the escrow moneys will be released.
5. In those cases where the tenant has had major inconvenience, property loss, or did not receive the services or facilities required by contract the tenant may be given a portion of the escrow moneys as compensation.
6. In those cases where an agreement cannot be reached, either party is free to pursue a settlement in the courts. If a lawsuit is filed in court, the escrow moneys will be frozen until the matter is litigated.