Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.22 - Title Insurance › Rule 6.6.2202 - ESCROW, CLOSING, OR SETTLEMENT SERVICES

Current through Register Vol. 13, July 5, 2024
(1)
				Escrow, closing, or settlement services are those activities undertaken by a
				title insurer or title agent acting in a fiduciary capacity with regard to a
				particular transaction or transactions, including the receipt and disbursement
				of money and the proration of insurance and taxes. Activities coincidental to
				the issuance of a title insurance policy such as accepting instruments for
				recording and filing and handling funds to pay recording and filing fees and
				property taxes are not considered escrow, closing, or settlement services.
(2) An escrow agent shall not
				accept funds or papers in escrow without first receiving dated, written
				instructions adequate to administer the escrow account and without receiving
				collected or cleared funds and documents to carry out the terms of the escrow
				instructions.
(3) An escrow agent
				shall use documents or other property deposited in escrow only in accordance
				with the written instructions of the principals to the escrow transaction or,
				if not so directed, in accordance with sound escrow practice or order of a
				court of competent jurisdiction.
(4) An escrow agent shall act without
				partiality to any of the parties to the escrow. An escrow agent may not close a
				transaction where he has, directly or indirectly, a monetary interest in the
				subject property either as buyer or seller.
(5) If an escrow agent has a business
				interest in the escrow transaction other than as escrow agent, the relationship
				or interest must be disclosed in the written escrow instructions. After noting
				such interest, an additional statement shall 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 that the transaction be closed by some other escrow agent."
(6) Upon completion of an escrow
				transaction, the escrow agent shall deliver to each principal a verified
				written, signed closing statement of the principal's account. The statement
				shall show all receipts and disbursements of escrow funds for that account as
				well as charges and credits to that account. Service charges made by the escrow
				agent and all disbursements by the agent in connection with the transaction
				shall be clearly designated. Payments outside of escrow, if shown in the
				statement, shall be set forth separately from payments under the escrow. A copy
				of the closing statement shall be retained by the escrow agent in the
				appropriate escrow file. The statement shall be dated and signed, a copy
				delivered to each interested real estate broker, and an additional copy
				furnished to an appropriate principal upon his request.
(7) An escrow agent shall not authorize or
				allow a bank to remove funds from the agent's trust account or escrow account
				for payment of bank service charges, overdraft charges, printed check charges,
				collection charges, bank fees, or service charges of any kind. Such charges
				shall be paid from the escrow agent's own funds. If bank procedures require,
				however, the deduction of such charges, the escrow agent must re-deposit to the
				account non-trust funds equal to the amount of the deduction within one
				business day of receipt of notification of the deduction.
(8) No escrow funds shall be placed in an
				interest bearing account unless:
(a) the
				escrow agent has received express written instructions to do so from the
				principal; and
(b) all earnings
				accruing to such account are credited to that account exclusively for the use
				and benefit of the principal or such other persons as the principal has
				designated in the written escrow instructions.