REAL PROPERTY; REAL ESTATE; INTEREST;
PROPERTY;
May 12, 2003 |
2003-R-0402 | |
INTEREST-BEARING ESCROW ACCOUNT IN REAL ESTATE TRANSACTIONS | ||
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By: Jerome Harleston, Senior Attorney | ||
You want to know whether realtors are prohibited from using an interest-bearing escrow account in real estate transactions.
The statutes require realtors to maintain a separate escrow or trust account for the deposit of money, including any down payment, earnest money, rental money, rental security deposit or other money to be held in trust, they receive, accept and hold on behalf of any principal, client or other person. The escrow or trust account must be separate from realtor’s own and held at a bank doing business in the state (CSG § 20-324k). The statutes are silent with respect to whether the escrow or trust account may bear interest.
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