Idaho Administrative Code › Title IDAPA 18 - Insurance, Department of › Rule 18.05.01 - RULES FOR TITLE INSURANCE REGULATION › Section 18.05.01.021 - TITLE INSURANCE AGENTS AND EMPLOYEES ACTING AS ESCROW AGENTS

Current through August 31, 2023
01.
Written Instructions
. An
			 escrow agent will not accept funds or papers into escrow without dated written
			 instructions signed by the parties or their authorized representatives adequate
			 to administer the escrow account and without receiving, at the time provided
			 with the escrow instructions, sufficient funds and documents to carry out terms
			 of the escrow instructions. Funds and documents deposited will be used only in
			 accordance with such written instructions. If additional instructions are
			 needed, the agent will obtain the consent of both parties, their
			 representatives to the escrow or an order of a court of competent jurisdiction
			 at the expense of the escrow parties. (3-31-22)
02.
Notice of Conflict of
			 Interest
. An escrow agent will act without partiality to any of the
			 parties to the escrow. An escrow agent cannot close a transaction where he has,
			 directly or indirectly, a monetary interest in the subject property either as
			 buyer or seller. If an escrow agent has a business interest in the escrow
			 transaction other than as escrow agent, the relationship or interest will be
			 disclosed in the written escrow instructions. After noting such interest, an
			 additional statement will appear as follows: "We call this interest to your
			 attention for disclosure purposes. This interest will not, in our opinion,
			 prevent us from being a fair and impartial escrow agent in this transaction,
			 but you are, nevertheless, free to request the transaction be closed by some
			 other escrow agent." (3-31-22)
03.
Closing Statement
. On completion of an escrow transaction, the
			 agent will deliver to each principal a written closing statement signed by the
			 agent of each principal's account. The same will show all receipts and
			 disbursements. Any charge made by and disbursements to the escrow agent will be
			 clearly noted. A copy will be retained. (3-31-22)
04.
Control of Funds
. An escrow
			 agent will maintain one or more trust accounts in a federally insured financial
			 institution into which all escrow funds received will be deposited and from
			 which there will be drawn escrow payments. No other funds will be commingled
			 with such trust account. Escrow fees will not be drawn until the escrow is
			 completely ready to close in accordance with the escrow instructions and will
			 be withdrawn not later than the day on which the final disbursements are made
			 for the escrow closing. (3-31-22)
05.
Escrow Accounting
			 Procedures
. An escrow agent will maintain on a current basis (a) an
			 escrow ledger with a separate numbered sheet for each escrow agreement and (b)
			 an escrow liability control account. Disbursements will be posted from checks
			 or other vouchers and each item, not the total of items, will be entered.
			 Escrow liability control account will balance with the escrow ledger at all
			 times and will equal the balance of funds in the trust accounts for escrows at
			 the bank. Checks cannot be drawn against an escrow account without sufficient
			 credit balance for the particular escrow existing at the time. Funds will not
			 be transferred between escrow agents except by writing checks and receipts
			 which are charged and credited respectively to accounts with the reason noted
			 and the authority therefor. All services will be performed and the escrow
			 account ready to close before any service or escrow fees may be charged and
			 drawn from an escrow account (unless an escrow is a long term collection, and
			 fees are payable monthly or annually). The escrow funds will be placed in the
			 trust accounts for escrows and no other funds commingled therewith. All entries
			 in any escrow account will be posted the date of the entry without regard of
			 the date of posting, but all entries will be posted daily. (3-31-22)
06.
Escrow Records
. Each escrow
			 agent will maintain in each escrow transaction: (3-31-22)
a. Evidence of all funds received including
			 copies of all instruments, which will include prenumbered cash receipts, copies
			 of cashier's checks, wire transfer confirmations or evidence of unconditional
			 payment of checks, as applicable; (3-31-22)
b. Complete evidence of all funds disbursed
			 which will include check stubs or check copies, and wire instructions for all
			 disbursements as applicable; and (3-31-22)
c. A final ledger sheet for each escrow
			 transaction listing all items received and disbursed. All records will be
			 available for audit, inspection and examination by the Director upon demand,
			 and all records will be preserved for not less than six (6) years from the
			 closing date of the escrow. (3-31-22)