Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-680 - Escrow Agent Registration Act › GENERAL PROVISIONS › Section 208-680-030 - Definitions

Current through Register Vol. 24-14, July 15, 2024
What definitions are applicable to these rules?
Unless the context clearly requires otherwise, the definitions in this section apply throughout these rules.
"Act" means the Escrow Agent Registration Act, codified under chapter 18.44 RCW.
"Applicant" means any person applying for an escrow officer license or any person or group of persons applying for an escrow agent license. The term "applicant" includes the principal officers and controlling persons of the applicant, as well as any escrow officer seeking to become an escrow agent's designated escrow officer or branch designated escrow officer.
"Branch designated escrow officer" means any licensed escrow officer designated by a licensed escrow agent and approved by the director to supervise a specific branch office. The branch designated escrow officer is responsible for supervising an escrow agent's handling of escrow transactions, management of the escrow agent's branch trust account, and supervision of all licensed escrow officers and other persons employed by the escrow agent at his or her branch designated office.
"Cash deposit" means funds deposited, in lieu of an errors and omissions policy, in an account in a recognized Washington state depository which account is maintained separate and apart from the escrow agent's own funds. The funds shall be deposited in such a manner to permit only the director to withdraw from the principal amount. The escrow agent may withdraw any interest accumulated to the account.
"Closing" means the transfer of title of real or personal property or execution of a deed, bill of sale or real estate contract, whichever event occurs first.
"Department" means the department of financial institutions.
"Designated escrow officer" means any licensed escrow officer designated by a licensed escrow agent and approved by the director as the licensed escrow officer responsible for supervising that escrow agent's handling of escrow transactions, management of the escrow agent's trust account, and supervision of all licensed escrow officers and other persons employed by the escrow agent.
"Director" means the director of the department of financial institutions or his or her duly authorized representative. For purposes of this act, the division of consumer services is deemed to be the director's authorized representative.
"Escrow" means the same as in RCW    18.44.011.
"Escrow instructions" are the instructions, signed by the principal parties to the transaction that identify the duties and responsibilities of the escrow agent in carrying out the escrow, that identify the thing or things of value held by the escrow agent and the specified condition or set of conditions under which the thing or things of value are to be transferred.
"Good funds" means funds in a bank account that are immediately usable by the owner of the account. Good funds may be derived from the monetary instruments described in RCW    18.44.400(3).
"Handling escrow transactions" means participating in escrow transactions. It includes, but is not limited to, having access to a client's: Personal information, financial records, or funds. Employees that perform administrative functions like payroll or human resources services are not handling escrow transactions unless such persons also perform duties meeting this definition.
"Investigation" means an inquiry undertaken for the purpose of detection of violations of the act and these rules or securing information lawfully required under the act and these rules. The director may conduct private or public investigations.
"Overdue instrument" means a negotiable instrument that is overdue as defined in RCW    62A.3-304.
"Permanent record" means any record required to be kept under RCW    18.44.400 for a period of six years from the completion of the escrow transaction.
"Principal officers" means natural person applicants for escrow agent licenses including corporate officers vice-president and above; directors, shareholders, members, or anyone else who owns ten percent or more of the escrow agent's equity; general or managing partners; sole proprietors and spouses of sole proprietors; designated and branch designated escrow officers; and any person defined as a "controlling person" in RCW    18.44.011(2).
"Principal parties" means the buyers and sellers in a purchase transaction, and the borrower and lender in a refinance transaction.
"Providing escrow services" means conducting transactions, except the acts of a qualified intermediary in facilitating an exchange under section  1031 of the Internal Revenue Code, wherein any person or persons, for the purpose of effecting and closing the sale, purchase, exchange, transfer, encumbrance, or lease of real or personal property to another person or persons, delivers any written instrument, money, evidence of title to real or personal property, or other thing of value to a third person to be held by such third person until the happening of a specified event or the performance of a prescribed condition or conditions, when it is then to be delivered by such third person, in compliance with instructions under which he or she is to act, to a grantee, grantor, promisee, promisor, obligee, obligor, lessee, lessor, bailee, bailor, or any agent or employee thereof.
"Reconveyance" means an instrument used to transfer title from an individual holding such title in trust to the equitable owner of real estate, when title is held as collateral security for a debt.
"Third party to the transaction" means those persons providing professional services necessary for the closing of the escrow, including, but not limited to: Real estate brokers, lenders, mortgage brokers, attorneys, tax facilitators and underlying lien holders.
"Transfer of title" occurs at the time the seller executes a deed or bill of sale and such is delivered to the purchaser or recorded.
"Trust" means a fiduciary relationship whereby a thing of value is delivered to an escrow agent with the intention that such thing of value be administered by the escrow agent for the benefit of the principal parties to the transaction.
"Trust account" means a bank account holding funds of any party to the transaction.
"Unclaimed funds" means any funds that are abandoned under the Uniform Unclaimed Property Act, chapter 63.29 RCW.
Statutory Authority:
								RCW
								   43.320.040 and chapter 18.44 RCW (as amended
								by   2010 c  34). 10-20-124, §
											208-680-030, filed 10/5/10,
								effective 11/5/10.