California Code of Regulations › Title 10 - Investment › Chapter 6 - Real Estate Commissioner › Article 19 - Escrows › Section 2950 - When Broker Handles Escrow

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The following acts in the handling of an escrow by a real
				  estate broker exempted from the provisions of the Escrow Law (by Section
				  17006(a)(4)
				  of the Financial Code) are prohibited and may be considered grounds for
				  disciplinary action:
(a) Soliciting or
				accepting an escrow instruction (or amended or supplemental escrow instruction)
				containing any blank to be filled in after signing or initialing of such escrow
				instruction (or amended or supplemental escrow instruction).
(b) Permitting any person to make any
				addition to, deletion from, or alteration of an escrow instruction (or amended
				or supplemental escrow instruction) received by such licensee, unless such
				addition, deletion or alteration is signed or initialed by all persons who had
				signed or initialed such escrow instruction (or amended or supplemental escrow
				instruction) prior to such addition, deletion or alteration.
(c) Failing to deliver at the time of
				execution of any escrow instruction or amended or supplemental escrow
				instruction a copy thereof to all persons executing the same.
(d) Failing to maintain books, records and
				accounts in accordance with accepted principles of accounting and good business
				practice.
(e) Failing to maintain
				the office, place of books, records, accounts, safes, files, and papers
				relating to such escrows freely accessible and available for audit, inspection
				and examination by the commissioner.
(f) Failing to deposit all money received as
				an escrow agent and as part of an escrow transaction in a bank, trust account,
				or escrow account on or before the close of the next full working day after
				receipt thereof.
(g) Withdrawing or
				paying out any money deposited in such trustee account or escrow account
				without the written instruction of the party or parties paying the money into
				escrow.
(h) Failing to advise all
				parties in writing if he has knowledge that any licensee acting as such in the
				transaction has any interest as a stockholder, officer, partner or owner of the
				agency holding the escrow.
(i)
				Failing upon closing of an escrow transaction to render to each principal in
				the transaction a written statement of all receipts and disbursements together
				with the name of the person to whom any such disbursement is made.
(j) Delivering or recording any instrument
				which purportedly transfers a party's title or interest in or to real property
				without first obtaining the written consent of that party to the delivery or
				recording.
1. New Article
				  19 (§
										2950) filed 12-11-57; effective
				  thirtieth day thereafter (Register 57, No. 22).
2. Amendment filed
				  8-21-63; designated effective 9-20-63 (Register 63, No. 14).
3. New
				  subsection (j) filed 3-18-88; operative 4-17-88 (Register 88, No.
				  14).
4. Amendment of first paragraph and NOTE filed 9-5-2003;
				  operative 10-5-2003 (Register 2003, No. 36).
Note: Authority cited: Section
					 10080,
					 Business and Professions Code. Reference: Section
					 10145,
					 Business and Professions Code; and Section
					 17006(a)(4),
					 Financial Code.