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May a distressed property consultant enter into an agreement to charge for distressed property consulting that provides that the agreed-upon fee will be placed in escrow until earned?

April 26, 2017agreed-upon Agreement charge consultant Consulting Distressed enter fee Property provides

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May a distressed property consultant enter into an agreement to charge for distressed property consulting that provides that the agreed-upon fee will be placed in escrow until earned?

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A. No. Section 265-b(2)(b) of the Real Property Law prohibits a consultant from charging for or accepting payment for consulting services before the full completion of the services. Requiring the homeowner to escrow the fee is tantamount to charging for the services.