Complying with the Escrow Rule

Under Rule 61J2-14.008 of the Florida Administrative Code, a real estate licensee who prepared or presented the contract (“Licensee”) must make sure the contract contains the name, address and phone number of the escrow agent, which applies to all escrow agents, not just attorneys and title companies. The Florida Realtors/Florida Bar Contract forms contain the appropriate blanks in the Escrow Agent Section of the Contract to fill in this information.  

In addition, if the Escrow Agent under the contract is an attorney or title company not nominated by Seller or Seller’s agent, then the Licensee’s Broker must request in writing within ten (10) business days after each escrow deposit is due, written verification from the Escrow Agent that the Escrow Agent has received the respective escrow deposit.  

Further, the Licensee’s Broker must within ten (10) business days of making the aforesaid written request provide the Seller’s Broker with either a copy of the written verification received from Escrow Agent, or written notice that Licensee’s Broker did not receive Escrow Agent’s deposit verification.  Escrow Agents must deposit the monies into an escrow account no later than the end of the third business day following receipt of the respective deposit.  

In summary, just make sure you are in compliance with this Escrow Rule including completing the Escrow Agent section of the real estate contract.  As always, should you have any questions in regards to the foregoing, please contact a member of the Berlin Patten team or your local real estate attorney.

Sincerely,

Berlin-Patten, PLLC

  

This communication is not intended to establish an attorney client relationship, and to the extent anything contained herein could be construed as legal advice or guidance, you are strongly encouraged to consult with your own attorney before relying upon any information contained herein.

All rights reserved. This copyrighted material may not be re-published without permission. Links are encouraged.

www.berlinpatten.com 

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