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6 Cards in this Set
- Front
- Back
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Establishing escrow accounts |
Only necessary if holding money or property for others. If established, it must be in the firm's licensed name, with a federally insured bank, and all accounts and all deposits must be designated as escrow. |
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Items requiring deposit |
Includes earnest money and down payments. Rental payments, application deposits, security deposits, and advances must also be deposited into an escrow account. |
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Interest-bearing accounts |
Not necessary, but must make written disclosure if interest is earned. |
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Disbursing escrow funds |
Funds may not be removed from escrow unless the transaction is consummated, by mutual agreement of the parties, or by court orders. Problem disbursements include:commissions, and insufficient funds. If the transaction does not close, funds must be held until : all parties agree upon the disbursement; court order; interpleader; or until the principal broker follows the terms of the sales contract. |
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Escrow violations |
Principal broker is primarily liable, but any other licensee may be secondarily liable for commingling, conversion, mixing account disbursement, failing to acknowledge receipt of escrow funds, failing to timely report escrow violations to the board, and escrow record keeping violations. |
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Judicial control of escrow accounts |
Board may request that a court seize control of mismanaged escrow accounts, barring licensee access and appointing a receiver to manage the account. |
