ESCROW
Pain Management
Escrow – what with its legal mandates and potential for fraud —
is a chronic headache for agents and brokers. Here’s relief
Cynthia DeLuca
Your buyer hands you an escrow check. Now what?
Where do you take it and how long do you have?
Florida’s Administrative Code 61J2-14.009 states that
every sales associate who receives any deposit shall
deliver the same to the broker or employer no later than the
end of the next business day following receipt of the item to
be deposited. Receipt by a sales associate or any other representative
of the brokerage firm constitutes receipt by the
broker for purposes of the broker’s time frame for deposits.
61J2-14.008(3) states the broker must deposit the funds immediately.
“Immediately” means the placement of a deposit
in an escrow account no later than the end of the third business
day following receipt of the item to be deposited.
The Administrative Code continues to guide brokers
under 61J2-14.010(1). This states that every broker who
receives from sales associates,
principals, prospects, or
other persons interested in
any real estate transaction,
any deposit, fund, money,
check, draft , personal property,
or item of value shall
immediately place the same
in a bank, savings and loan
association, trust company,
credit union, or title company
having trust powers, in an insured escrow or trust account. If
this is being placed in the broker’s trust account, the broker
must be a signatory on all escrow accounts.
Did you notice that stated title companies as well? It
doesn’t matter where the money is ending up, even if not in
the broker’s trust account, the timing requirements apply the
same.
Rule 61J2-14.008(b) of the Florida Administrative Code
requires licensees who prepare or present an off er to provide
the name, address and telephone number of the attorney
or title company that will serve as escrow agent. This may
not be who is closing the transaction, rather who is holding
the escrow money. It goes on to say within ten (10) business
days aft er each deposit is due under the sales contract, the
licensee’s broker shall make written request to the title company
or attorney to provide written verification of receipt of
the deposit, unless the deposit is held by a title company
or by an attorney nominated in writing by a seller or seller’s
agent. Within ten (10) business days of the date the Licensee’s
broker made the written request for verification of the
deposit, the Licensee’s broker shall provide Seller’s broker
with either a copy of the written verification, or, if no verification
is received by Licensee’s broker, written notice that
Licensee’s broker did not receive verification of the deposit.
THE PAYMENT OF MONEY
If you choose to accept a check as a payment for escrow
versus a money order or cashier’s check, avoid being victimized
by a worthless check. Follow these guidelines recommended
by Florida’s Attorney General:
• Do not accept post-dated checks (checks dated for future
or indeterminate dates).
• Do not agree to hold a check, even for a few hours.
• Do not accept third-party checks.
• Ask for a form of picture identification—Driver’s License
or identification issued by a governmental agency.
Every sales associate who
receives any deposit shall
deliver the same to the broker
or employer no later than the
end of the next business day
following receipt of the item
to be deposited.
14 Orlando REALTOR® July / August 2018