Virginia Administrative Code › Title 18 - PROFESSIONAL AND OCCUPATIONAL LICENSING › Agency 25 - AUCTIONEERS BOARD › Chapter 21 - REGULATIONS OF THE VIRGINIA AUCTIONEERS BOARD › Part IV - Standards of Practice › Section 18VAC25-21-150 - Escrow funds

Current through Register Vol. 40, No. 24, July 15, 2024
A. Proceeds of a
				  personal property auction not disbursed to the owner on auction day shall be
				  deposited in an auction escrow account by the licensee no later than the next
				  banking day following the date of auction or sale of the goods, whichever
				  occurs first.
B. Notwithstanding
				  the provisions of subsection A of this section , proceeds that are paid via
				  credit card, debit card, check card, or any other electronic funds transfer
				  (EFT) method shall be deposited into an auction escrow account upon receipt
				  from the originating source.
C. The
				  auction escrow account shall be used solely for the preservation and guarantee
				  of auction proceeds until disbursed at settlement. Funds for any other purpose
				  shall not be commingled with the auction escrow account. Contingency accounts
				  established to guarantee checks accepted on the owner's behalf shall not be
				  considered commingling of funds. Moneys due to the licensee shall not be
				  withdrawn from the auction escrow account until final settlement is made with
				  the owner.
D. Funds to be deposited
				  in the escrow account may include moneys that shall ultimately belong to the
				  licensee for incidental expenses per the terms of the contract. Such moneys
				  shall be separately identified in the escrow account records and shall be paid
				  to the licensee by a check drawn on the escrow account when the funds become
				  due to the licensee. The fact that an escrow account contains money that may
				  ultimately belong to the licensee does not constitute "commingling of funds"
				  provided that there are periodic withdrawals of said funds at intervals of not
				  more than six months and that the licensee can at all times accurately identify
				  the total funds in that account that belong to the licensee.
E. On funds placed in an account bearing
				  interest, written disclosure in the contract of sale or lease at the time of
				  contract or lease writing shall be made to the principals to the transaction
				  regarding the disbursement of interest.
F. Auctioneers and auction firms shall use
				  federally insured depositories in the Commonwealth of Virginia. All accounts,
				  checks, and bank statements shall be labeled "escrow" and the accounts shall be
				  designated as "escrow" accounts with the financial institution where such
				  accounts are established.
G.
				  Proceeds due from the sale of goods other than real property shall be disbursed
				  to the owner no later than 30 days after the date of each auction.
H. Funds from a real estate auction shall be
				  held in escrow until settlement in accordance with the agreement of
				  sale.
I. If the owner's goods are
				  not sold in a single auction, proceeds due shall be disbursed to the owner
				  within 30 days after each auction for goods other than real property, or in
				  accordance with the agreement of sale for the sale of real property. Notice
				  must be given to the owner of tentative date of auction, or date of return to
				  the owner, of the remaining goods.
J. The balance in the escrow accounts shall
				  be sufficient at all times to account for all funds that are designated to be
				  held by the licensee. A licensee shall not disburse or cause to be disbursed
				  moneys from an escrow account unless sufficient money is on deposit in that
				  account to the credit of the individual client or property involved.
Statutory Authority: §§
												54.1-201 and
						54.1-602 of the Code of
						Virginia.