876 IAC 8-2-2 - Written offers to purchase; disposition of money received

Current through March 30, 2022

Authority: IC 25-34.1-2-5

Affected: IC 25-34.1-2-5

Sec. 2.

(a) Any written offers to purchase or authorization to purchase shall be communicated to the seller for the seller's formal acceptance or rejection immediately upon receipt of the offer. The listing broker shall, on or before the next two (2) banking days after final acceptance of the offer to purchase, do one (1) of the following:
(1) Deposit all money received in connection with a transaction in the listing broker's escrow/trust account.
(2) Deposit money received in connection with a transaction to whoever is indicated in the purchase agreement to receive the deposit. The commission shall hold any broker with whom money is deposited responsible for the money.
(b) If the earnest money deposit is other than cash, check, or its equivalent, this fact shall be:
(1) communicated to the seller before the seller's acceptance of the offer to purchase; and
(2) shown in the earnest money receipt.
(c) All money shall be retained in the escrow/trust account so designated until disbursement of the money is properly authorized. If the beneficiary agrees in writing, the listing or selling broker holding the earnest money may voluntarily transfer any interest earned on the broker's escrow/trust account to a fund established for the sole purpose of providing affordable housing opportunities in Indiana that meets the requirements of Internal Revenue Code 501(c)(3). The listing or selling brokers holding any earnest money are not required to make payment to the purchasers or sellers when a real estate transaction is not consummated unless the parties enter into a mutual release of the funds or a court issues an order for payment, except as permitted in subsection (d).
(d) Upon being notified that one (1) or more parties to an offer to purchase intend not to perform, the listing or selling broker, holding the earnest money, may release the earnest money deposit as provided in the offer to purchase or, if no provision is made in the offer to purchase, the selling or listing broker, holding the earnest money, may initiate the release process. The release process shall require the selling or listing broker to notify all parties at their last known address by certified mail that the earnest money deposit shall be distributed to the parties specified in the letter unless:
(1) all parties enter into a mutual release; or
(2) one (1) or more of the parties initiate litigation; within sixty (60) days of the mailing date of the certified letter. If neither the buyer nor the seller initiates litigation or enters into a written release within sixty (60) days of the mailing date of the certified letter, the broker may release the earnest money deposit to the party identified in the certified letter.

Notes

876 IAC 8-2-2
Filed 5/22/2014, 11:50 a.m.: 20140618-IR-876140061FRA, eff 7/1/2014 Readopted filed 11/19/2020, 9:56 a.m.: 20201216-IR-876200513RFA

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