Fla. Admin. Code Ann. R. 61B-20.003 - Escrow Agents and Escrow Agreements

(1) In determining whether an escrow agent, identified in an escrow agreement filed with the division, is independent of a condominium developer, the division, when it has reason to question the independence of the escrow agent, shall consider and require reasonable disclosure of factors, including any familial relationship or common financial interest between the developer and the escrow agent, which reasonably relate to the developer's ability to directly or indirectly control or influence the escrow agent in the performance of his statutory duties. Additionally, when the division has reason to question the independence of the escrow agent, the division shall require a statement from the escrow agent attesting to the agent's independence and affirming that there is no conflict between the agent's duties as escrow agent and in any other capacity in which the agent serves. One who is otherwise qualified to serve as escrow agent, however, will not be precluded from serving in such a capacity solely because:

(a) The escrow agent performs routine banking or financial services for the developer; or

(b) A non-employee attorney-client relationship exists between the developer and the escrow agent, including representation of the developer in legal matters relating to the condominium for which he serves as escrow agent, unless and until the obligations as attorney and as escrow agent result in a conflict of interest or require a violation of the respective legal duties attendant to such positions; or,

(c) The escrow agent provides brokerage services on behalf of the developer, except that such an escrow agent is not independent of the developer with respect to any deposits or payments received by the escrow agent pursuant to any sales, rental or lease agreements for which the escrow agent has also served as the developer's sales, rental, or leasing agent.

(2) At any time that the Division concludes that an escrow agent is not independent of a developer, it shall cite this as a deficiency in the developer's condominium reservation filing or residential condominium prospectus and shall order the developer to immediately obtain an independent escrow agent and have all escrow funds turned over to the new agent.

(3) If the developer is required to have an escrow agreement by the provisions of section 718.202, F.S., in connection with a filing made pursuant to paragraph 61B-17.001(1)(a), F.A.C., the escrow agreement shall be separate from any escrow agreement used by the developer as part of a reservation filing pursuant to paragraph 61B-17.001(1)(b), F.A.C.

Notes

Fla. Admin. Code Ann. R. 61B-20.003

Rulemaking Authority 718.501(1)(f) FS. Law Implemented 718.202(8), 718.502 FS.

New 10-1-85, Formerly 7D-20.03, Amended 1-27-87, 3-21-89, Formerly 7D-20.003.

New 10-1-85, Formerly 7D-20.03, Amended 1-27-87, 3-21-89, Formerly 7D-20.003.