49 Pa. Code § 35.325 - Escrow account

(a) An escrow account shall:

(1) Be maintained in a Federally- or State-insured bank or recognized depository.

(2) Designate the broker as trustee.

(3) Provide for the withdrawal of funds without prior notice.

(4) Be used exclusively for escrow purposes.

(b) A broker who is a sole proprietor or broker of record may give an employee written authority to deposit money into an escrow account and may give a licensed employee written authority to withdraw funds from the escrow account for payments that are properly chargeable to the account.

(c) If money is expected to be held in escrow for more than 6 months, the broker is encouraged to deposit the money into an interest-bearing escrow account. Interest earned on an escrow account shall be held and disbursed, pro rata, in the same manner as the principal amount, unless the parties to the transaction direct otherwise by agreement. A broker may not claim the interest earned on an escrow account, unless the broker is a lessor as provided in section 511.2 of the Landlord and Tenant Act (68 P. S. § 250.511b).

(d) A broker shall provide the Commission or its authorized representatives, upon written request or under an office inspection under § 35.246 (relating to inspection of office), a letter addressed to the bank or depository where the escrow account is maintained authorizing the release of records pertaining to the account.

Notes

49 Pa. Code § 35.325

The provisions of this §35.325 adopted February 24, 1989, effective 2/25/1989, 19 Pa.B. 781; amended August 19, 2005, effective 8/20/2005, 35 Pa.B. 4711.

The provisions of this §35.325 issued under the Real Estate Licensing and Registration Act (63 P. S. §§ 455.101-455.902); amended under sections 201, 501, 601, 602 and 604 of the Real Estate Licensing and Registration Act (63 P. S. §§ 455.201, 455.501, 455.601, 455.602 and 455.604).