20 CSR 2250-8.130 - Earnest and Escrow Money; Disputes
(1) A
broker shall not accept any note, nonnegotiable instrument or anything of value
not readily negotiable as earnest money in a transaction without the signed,
written consent of the owner of the real estate.
(2) In the event a dispute arises concerning
the return or forfeiture of any monies or other valuables held by a broker in
escrow, the broker shall continue to retain the money or valuables in escrow
until a written release is obtained from all parties consenting to its
disposition or until a civil action is filed to determine its disposition at
which time payment may be made into the court. However, in the absence of a
pending civil action or written release and upon passage of sixty (60) days
from the date of the dispute, a broker may disburse escrow monies or valuables
to either party to the transaction based upon a good faith decision by the
broker that the opposite party has failed to perform as agreed, but this
disbursement shall only be made after the broker has given fifteen (15) days'
written notice by certified mail to all parties concerned at their last known
address setting forth the broker's proposed action. The commission will not
take disciplinary action against a broker who in good faith disburses escrow
monies or other valuables pursuant to this rule; however, nothing in this rule
relieves a broker of any civil action which the damaged party may file in a
court of law nor does this rule require a broker to remove money or other
valuables from the broker's escrow account when disposition is disputed by the
parties.
Notes
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