News & Information: Risk Management Tips

Risk Management - Escrow Conflict

Thursday, August 23, 2012  
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»A broker must notify the Florida Real Estate Commission within 15 days of conflicting demands on an escrow deposit. Within 30 days, the broker must tell FREC how the escrow funds will be distributed.

Brokers who are holding escrow funds for a purchase and sale transaction and who receive conflicting demands for the return of the deposit must comply with Section 475.25(1)(d)(1), Florida Statutes. A broker can be civilly liable for wrongfully releasing the funds.

Risk Management Tips of the Week are provided by the ORRA Risk Management Subcommittee as a service to ORRA members. The tips are not a substitute for individual legal consultation. Tips should not be relied upon in specific situations without consulting a real estate attorney.

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