WeVote
Log In

Bill

Bill

SB 26

allowing the department of justice to authorize the preclosing use of a portion of a deposit held in escrow for the payment of certain construction customizations, upgrades, or change orders.

2025 Regular Session Introduced by Dan Innis and 7 co-sponsors

SB 26 lets New Hampshire's DOJ authorize early access to escrow deposits for construction customizations before project closing, reducing buyer financial protections.

Signed by the Governor on 08/01/2025; Chapter 291; Effective 08/01/2025
0
WeVote Research Nonpartisan
Bill Summary · SB 26

Legislative bill overview

SB 26 authorizes New Hampshire's Department of Justice to allow developers and builders to access portions of escrow deposits before a construction project closes, specifically for payment of customizations, upgrades, or change orders requested by buyers. This modifies the traditional escrow system where funds remain locked until final closing and project completion.

Why is this important

Escrow deposits are safeguards that protect both buyers and sellers in real estate transactions. Allowing pre-closing access to these funds could accelerate construction financing and reduce delays for custom work, but it also reduces the financial protection available to buyers if disputes arise before closing or if a builder faces financial difficulties.

Potential points of contention

  • Buyer protection concerns: Reducing escrow protections may leave purchasers vulnerable if contractors fail to complete work or if disputes emerge over customization specifications and quality before closing.
  • Regulatory clarity: The bill grants discretionary authority to the Department of Justice without detailed statutory guidelines, leaving ambiguity about what conditions must be met for authorization and how disputes will be resolved.
  • Developer vs. consumer balance: While pre-closing access eases cash flow for builders, it shifts financial risk toward buyers, particularly those in disputes over whether change orders are legitimate or properly documented.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.