Real Property Law

After the parties entered into a sale contract but before closing, a title report revealed the existence of three open building permits with respect to the property. As a result, at closing, sellers deposited $35,000 of the purchase price into an escrow account pursuant to an agreement that required sellers to obtain proof that the project improvements had been completed or proof of cancellation of the open permits. Sellers obtained proof of the completion of one of the three improvement but not the others. Purchasers then demanded release of the escrowed funds, and sellers responded by bringing this action for a judgment declaring that they were entitled to release of the funds. Supreme Court granted summary judgment to purchasers, and sellers appealed.