Evanston, Ill., City Code § 5 § 5-4-3-3
ESCROW OF DEPOSITS (Evanston Housing Regulations)
Operative Text
(A) Any deposit made in connection with the purchase or reservation of a unit shall be placed in escrow and held in an account designed solely for that purpose by an institution whose accounts are insured by a government agency until: 1) Delivered to the declarant at closing; 2) Delivered to the declarant because of purchaser's default under a contract to purchase the unit; or 3) Refunded to the purchaser. (B) If the deposit is placed in an interest-bearing account, the interest shall be paid to the purchaser. (C) Such escrow funds shall not be subject to attachment by the creditors of either the purchaser or the declarant.
Under Evanston, Ill., City Code § 5-4-3-3, any deposit paid in connection with purchasing or reserving a residential unit must be held in a dedicated escrow account at a government-insured financial institution. The funds stay in escrow until one of three events occurs: the deal closes, the purchaser defaults, or the deposit is refunded. If the account earns interest, that interest belongs to the purchaser, and the escrowed funds are shielded from creditors of either party.
Plain English — not legal advice.
Operators and declarants subject to Evanston, Ill., City Code § 5-4-3-3 generally maintain a dedicated, government-insured escrow account used solely for holding purchaser or reservation deposits — not commingled with operating funds. Compliant practice involves releasing those funds only upon closing, a documented purchaser default, or a refund, and remitting any accrued interest to the purchaser rather than retaining it. Keeping clear records of account activity and the triggering event for any release supports demonstrable compliance with this provision.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under Evanston, Ill., City Code § 5-4-3-3, purchasers have a right to have their deposit held in a protected, dedicated escrow account at a government-insured institution, and to receive any interest earned on that account. If a deposit appears to have been commingled with other funds, used before closing, or if earned interest was withheld, those facts may be relevant to a complaint or legal claim. Tenants and purchasers who believe this provision has been violated can contact the City of Evanston's relevant housing or consumer protection office, or reach out to a tenant-rights or housing-rights organization for general guidance.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 18, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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