Current through Reg. 50, No. 187; September 24, 2024
(1)
(a) A real estate broker, upon receiving
conflicting demands for any trust funds being maintained in the broker's escrow
account, must provide written notification to the Commission within 15 business
days of the last party's demand and the broker must institute one of the
settlement procedures as set forth in Section 475.25(1)(d)1., F.S., within 30
business days after the last demand.
(b) A broker, who has a good faith doubt as
to whom is entitled to any trust funds held in the broker's escrow account,
must provide written notification to the Commission within 15 business days
after having such doubt and must institute one of the settlement procedures as
set forth in Section 475.25(1)(d)1., F.S., within 30 business days after having
such doubt. The determination of good faith doubt is based upon the facts of
each case brought before the Commission.
(c) If one of the parties to a failed real
estate sales transaction does not respond to the broker's inquiry as to whether
that party is placing a demand on the trust funds or is willing to release them
to the other party, the broker may send a certified Notice, return receipt
requested to theaddress of record or email address of record shown with the
DBPR to the non-responding party. This Notice shall include the information
that a demand has been placed by the other party; that a response must be
received by the seventh business day following dispatch of the Notice, as
defined below; and show the contacting broker's mailing address, phone number,
and email address. A failure to respond to the Notice within seven business
days will be construed as authorization for the broker to release the funds to
the other party.
(2)
(a) If the broker has instituted a settlement
procedure other than a request for an Escrow Disbursement Order, the broker
shall provide written notification to the Commission within 30 business days of
the receipt of the last demand or good faith doubt of the procedure instituted
to resolve the matter.
(b) If the
broker has requested an Escrow Disbursement Order and the broker is notified in
writing that no Escrow Disbursement Order will be issued, then the broker shall
institute another settlement procedure and so notify the Commission within 30
business days after the broker's receipt of such notification.
(c) If the broker has requested an Escrow
Disbursement Order and the dispute is subsequently settled or goes to court
before the Order is issued, the broker shall notify the Commission within 10
business days of such event.
(3) When a broker provides written Notice of
the existence of conflicting demands for escrowed funds, the effective date of
that Notice is deemed to be the date of the last dispached Notice. As used in
this Rule, the term "Notice" means a notice to a non-responding party regarding
a demand for release of escrow funds pursuant to paragraph (1)(c), above. As
used in this Rule, the term "date of the last dispached Notice" shall mean the
date the certified letter or emailed Notice is postmarked or the email send
confirmation is dated.
(4) A
request for an Escrow Disbursement Order as a settlement procedure is deemed
instituted when the completed request form is mailed or otherwise dispatched to
the Commission.
(5) Brokers who are
entrusted with an earnest money deposit (EMD), pursuant to a residential sales
contract utilized by the Department of Housing and Urban Development (HUD) in
the sale of property owned by HUD, shall comply with the EMD requirements of
the specific HUD contract, and are not required to follow the notice or
settlement procedures of Section 475.25(1)(d)1., F.S., and subsection (1) of
this rule.
(6) This rule shall be
reviewed, and if necessary, repealed, modified, or renewed through the
rulemaking process five years from the effective date.
Rulemaking Authority
475.05,
475.25 FS. Law Implemented
83.49(3)(d),
475.25
FS.
New 10-13-85, Formerly 21V-10.32, Amended 2-18-92, 12-8-92,
6-28-93, Formerly 21V-10.032, Amended 11-16-93, 6-6-94, 8-6-96, 11-10-97,
1-17-02, 12-8-20.
