Escrow Management Flashcards
When does a sales associate need to deliver binder deposits to the broker-employer.
Immediately. Meaning no later than the end of the next business day.
When does the broker have to deposit binder deposits.
Not counting the day the escrow was received, at the end of the 3rd business day the broker has to deposit a binder deposit.
What must occur when a post dated binder deposit is accepted.
1) The seller must approve of the post dated check.
2) The fact the check is post dated should be noted on the sales contract.
NOTE: post dated check are considered promissory notes in FL
What are acceptable depositories for binder deposits?
Interest or Non-Interest-bearing account in a commercial bank, credit union, or savings association.
What must occur when a title company or attorney hold escrow?
No later than 10 business days from when deposit is due licensee must request written confirmation of the deposit.
No later than 10 business days after broker made request for verification, the broker must provide written confirmation received to sellers real estate broker.
Facts abour Interest-bearing escrow accounts
Only if all parties (Buyer, Seller, Broker) give written consent can escrow money be deposited into an interest baring account.
Written consent must include who will receive the interest and specify when the accrued interest is to be disbursed.
The interest-bearing account must be an insured account in a depository located and doing business in Florida.
What is the maximum amount of a brokers own money that can stay inside an escrow account.
$1000 for sales escrow.
$5000 for property management escrow.
The additional funds purpose is to cover any bank maintenance fees.
Escrow Disbursement Dispute what are Conflicting Demands?
Conflicting demands occur when buyer and seller make demand for binder deposit and dispute cannot be resolved.
What notices must be given if a Broker receives conflicting demands for escrow disbursment?
If a broker who maintains an escrow account receives conflicting demands the broker needs to notify FREC within 15 days of receiving the conflicting demand.
The broker must also execute one of the four settlement procedures within 30 business days of conflicting demands.
If an attorney or title company have escrow the broker does not need to notify FREC.
What are the 3 exceptions to notify FREC when a broker receives conflicting demands for escrow disbursement.
1) If a broker is entrusted with escrow on a HUD-owned property.
2) residential condominium right of rescission is executed as authorize by the condominium act. (3 days for resale - 10 days for new development)
3) Buyer fails to get financing and a finance contingency is in place.
What situation constitutes good-faith doubt?
Another party does not respond to a a broker’s inquiry about and escrow disbursement.
Broker can send a certified notice letter, return receipt requested, to the non responding party that a demand has been made on the escrowed funds and that failure to respond by a designated date will be regarded as authority for the broker to release the funds to the demanding party. (all though not required by law, to limit the brokers liability, it is advisable before releasing trusts funds to secure the return receipt to show proof the notice was delivered.
Key reporting deadlines for escrowed accounts.
Sales associates have to deliver escrow by end of the next business day
Brokers must deposit escrow by the end of the 3rd business day. Day received does not count.
Broker must notify FREC within 15 business days of conflicting demands.
Broker must institute one of the settlement procedures within 30 business days of receiving conflicting demands.
**If Broker requests an EDO and the escrow dispute is either settled or goes to court before the EDO is issued, the broker must notify FREC within 10 business days.
What are the four escrow settlement procedures?
(M.A.L.E.) M Mediation A Arbitration L Litigation E Escrow Disbursement Order
What are 3 ways broker get in trouble with Antitrust Laws?
1) Price Fixing - Collaborating with other brokers on commission.
2) Boycott - not showing a particular agent/companies listings because of lower commission.
3) Tying - forcing a buyer or a seller to use specific trades for specific jobs. (Forcing a particular lender…)
What does the commercial real estate lien act accomplish?
Give a broker lien rights for unpaid commissions involving commercial property.
