Missouri Code of State Regulations › Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE › Division 2250 - Missouri Real Estate Commission › Chapter 8 - Business Conduct and Practice › Section 20 CSR 2250-8.120 - Deposits to Escrow or Trust Account

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This rule requires all earnest money be
				  deposited in a noninterest bearing escrow account not later than ten (10)
				  banking days next following the execution of a contract. If the account is
				  interest-bearing, all parties must be made aware. A salesperson must
				  immediately deliver to the broker all money received in connection with a
				  transaction in which s/he is engaged.
(1) All money received by a licensee as set
				out in section 339.100.2(1), RSMo shall be deposited in the escrow or trust
				account maintained by the broker no later than ten (10) banking days following
				the last date on which the signatures or initials, or both, of all the parties
				to the contract are obtained, unless otherwise provided in the contract.
				Earnest money received prior to acceptance of a written contract may be
				deposited into the escrow account by the broker with the written authorization
				of the party (ies) providing the funds.
(2) A licensee shall immediately deliver to
				the broker with whom affiliated all money received in connection with a real
				estate transaction in which the licensee is engaged.
(3) The escrow or trust account maintained by
				a broker, as required by the license law, shall be a checking account in a
				bank, savings and loan, or credit union. If the escrow or trust account
				maintained by a broker is an interest-bearing account, the broker shall
				disclose in writing to all parties to the transaction that the account is
				interest-bearing and the disclosure shall indicate who is to receive the
				interest.
(4) Each broker shall
				deposit into the escrow or trust account all funds coming into the broker's
				possession as set out in section 339.100.2(1), RSMo, including funds in which
				the broker may have some future interest or claim and including, but not
				limited to, earnest money deposits, prepaid rents, security deposits, loan
				proceeds, and funds paid by or for the parties upon closing of the transaction.
				No broker shall commingle personal funds or other funds in the broker's escrow
				account except to the extent provided by section 339.105.1, RSMo. Commissions
				payable must be removed from the escrow account at the time the transaction is
				completed. After the transaction is completed, interest payable shall be
				disbursed to the appropriate party(ies) from the escrow account no later than
				ten (10) banking days following the receipt of the next statement of the escrow
				account. When the licensee receives all interest earned, interest payable to a
				licensee must be removed from the escrow account within ten (10) banking days
				following the receipt of the next statement of the escrow account.
(5) In addition to the notification required
				by section 339.105.2, RSMo, each broker shall consent upon the request of the
				commission or its agent to the examination and audit of the broker's escrow or
				trust account by the commission or its agent. As part of the consent, each
				broker, upon opening any additional account(s), shall execute a form entitled
				Consent to Examine and Audit Escrow or Trust Account.
(6) Each check written on an escrow account
				or each corresponding check stub, or other record of disbursement of funds from
				the account and each deposit ticket shall indicate the related real estate
				transaction(s). Each check written on an escrow account for commission shall be
				made payable to the licensee to whom the commission is owed or to the firm's
				general operating account.
(7) The
				designated broker and the branch office manager shall be responsible for the
				maintenance of the escrow account and shall ensure the brokerage's compliance
				with the statutes and rules related to the brokerage escrow
				account(s).
*Original authority: 339.100, RSMo 1941, amended 1978,
					 1993, 2004, 2005, 2006, 2007, 2008; 339.105, RSMo 1978, amended 1981, 1986,
					 1987, 2003, 2004; and 339.120, RSMo 1941, amended 1963, 1967, 1981, 1988, 1993,
					 1995, 1999, 2004, 2008.