30 Miss. Code. R. 1601-3.4 - Earnest Money
A. The responsible
broker is responsible at all times for earnest money deposits. Earnest money
accepted by the broker or any licensee for which the broker is responsible and
upon acceptance of a mutually agreeable contract is required to deposit the
money into a trust account prior to the close of business of the next banking
day. The responsible broker is required to promptly account for and remit the
full amount of the deposit or earnest money at the consummation or termination
of transaction. A licensee is required to pay over to the responsible broker
all deposits and earnest money immediately upon receipt thereof. Earnest money
must be returned promptly when the purchaser is rightfully entitled to same
allowing reasonable time for clearance of the earnest money check. In the event
of uncertainty as to the proper disposition of earnest money, the broker may
turn earnest money over to a court of law for disposition. Failure to comply
with this regulation shall constitute grounds for revocation or suspension of
license.
B. When the broker is the
agent for the seller and for any reason the seller fails or is unable to
consummate the transaction, the broker has no right to any portion of the
earnest money deposited by the purchaser, even if a commission has been earned.
The entire amount of the earnest money deposit must be returned to the
purchaser and the broker should look to the seller for compensation.
C. Accurate records shall be kept on escrow
accounts of all monies received, disbursed, or on hand. All monies shall be
individually identified as to a particular transaction. Escrow records shall be
kept in accordance with standard accounting practices and shall be subject to
inspection at all times by the Commission.
Monies received in a trust account on behalf of clients or customers are not assets of the broker; however, a broker may deposit and keep in each escrow account or rental account some personal funds for the express purpose of covering service charges and other bank debits related to each account.
D. If a broker, as
escrow agent, accepts a check and later finds that such check has not been
honored by the bank on which it was drawn, the broker shall immediately notify
all parties involved in the transaction.
Notes
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