Stopping Payment on Attorney's Trust Check To Seller

100 N.J.L.J. 1217
December 29, 1977
 

OPINION 384

Stopping Payment on
Attorney's Trust Check To Seller

The inquirer asks whether an attorney who has issued his trust check covering balance of sale proceeds due to seller may ethically stop payment after the dosing statement was duly approved by all parties and attorneys, for the reason that his client, the buyer, upon taking possession claimed he had found defects in the building.
It is the opinion of this Committee that where parties to a closing agree that the closing obligations have been met and that the monies shall be paid, it is ethically improper to stop payment on the attorney's trust check issued to sellers. Closing funds received upon approval of all parties to distribute must be promptly accounted for and turned over to the persons agreed upon in the absence of a court order to the contrary.