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Escrow
agents serve as the neutral "stakeholder" and, the communications link
to all parties in the sale of a business.
~from
339.105. 1.
Each Broker who holds funds belonging to another shall maintain such
funds in a separate bank account in a financial institution which shall
be designated an escrow or trust account. This requirement includes
funds in which he or she may have some future interest or claim. Such
funds shall be deposited promptly unless all parties having an interest
in the funds have agreed otherwise in writing. No Broker shall commingle
his or her personal funds or other funds in this account with the
exception that a Broker may deposit and keep a sum not to exceed one
thousand dollars in the account from his or her personal funds, which
sum shall be specifically identified and deposited to cover service
charges related to the account.
2. Each
Broker shall notify the commission of his or her intent not to maintain
an escrow account, or the name of the financial institution in which
each escrow or trust account is maintained, the name and number of each
such account, and shall file written authorization directed to each
financial institution to allow the commission or its authorized
representative to examine each such account; such notification and
authorization shall be submitted on forms provided therefore by the
commission. A Broker shall notify the commission within ten business
days of any change of his or her intent to maintain an escrow account,
the financial institution, account numbers, or change in account status.
3. In
conjunction with each escrow or trust account a Broker shall maintain
books, records, contracts and other necessary documents so that the
adequacy of said account may be determined at any time. The account and
other records shall be provided to the commission and its duly
authorized agents for inspection at all times during regular business
hours at the Broker's usual place of business.
4. Whenever
the ownership of any escrow moneys received by a Broker pursuant to this
section is in dispute by the parties to a real estate sales transaction,
the Broker shall report and deliver the moneys to the state treasurer
within three hundred sixty-five days of the date of the initial
projected closing date. The parties to a real estate sales transaction
may agree in writing that the funds are not in dispute and shall notify
the Broker who is holding the funds.
5. A Broker
shall not be entitled to any money or other money paid to him or her in
connection with any real estate sales transaction as part or all of his
or her commission or fee until the transaction has been consummated or
terminated, unless agreed in writing by all parties to the transaction.
6. When,
through investigations or otherwise, the commission has reasonable cause
to believe that a licensee has acted, is acting or is about to act in
violation of this section, the commission may, through the attorney
general or any assistants designated by the attorney general, proceed in
the name of the commission to institute suit to enjoin any act or acts
in violation of this section.
7. Any such
suit shall be commenced in either the county in which the defendant
resides or in the county in which the defendant has acted, is acting or
is about to act in violation of this section.
8. In such
proceeding, the court shall have power to issue such temporary
restraining or injunction orders, without bond, which are necessary to
protect the public interest. Any action brought under this section shall
be in addition to and not in lieu of any other provisions of this
chapter. In such action, the commission or the state need not allege or
prove that there is no adequate remedy at law or that any individual has
suffered any economic injury as a result of the activity sought to be
enjoined. |
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