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Before making a payment on a settlement plan, should the settlement agreement be signed by both parties first?

Los Angeles, CA |

I have been set up on a settlement plan making monthly payments with an initial down payment . I will be signing the agreement very soon and the payment is also due soon . Should I wait until the other party also signs the agreement before I remit payment ? Thank you in advance

Attorney Answers 3

  1. Best answer

    Yes. You should have an executed agreement detailing everything you discussed re payment plan BEFORE making any payments. And stick to it to the letter. Otherwise, everything will be exactly as it was before the agreement, interest penalties, etc.

  2. Alert the other party that you are placing the payment in escrow to be completed when the payment is complete. Have the money ready to go as soon as they sign it.

  3. You should have a settlement agreement signed by all parties prior to making any payments. If the payment is due soon, contact the other party and tell them that you need the agreement signed and until it is signed the payment will not be made. A digital copy can be acceptable as an "original" signature which might help with the pending deadline.