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Legal IssuesBranch office escrow requirements
A legal hotline caller was concerned with the obligation to deposit a second deposit check into the escrow account the next business day because she worked out of a branch office approximately 20 miles from the main office. The “Powers That Be” noted that the deadline for depositing the check was by the end of the next business day following its “receipt in the real estate office where the escrow records are maintained.” Does this mean that the second deposit does not have to be deposited until after the main office receives the check? And if so, how long does the branch office have to get the check to the main office?
Unfortunately, the regulations are not clear on this issue. However, because the Real Estate Commission is comprised of brokers from both large and small offices, we would anticipate that any investigations would be tempered with a reasonable attempt to comply with the requirements. It may not be practical for a branch office to deposit the check by the end of the next business day; your branch office manager must be prepared, however, to document why. While we cannot predict with any certainty what the Commission would find to be a reasonable justification for delaying deposit, we can state with confidence holding the check for 3, 4, 5 or more days before taking any steps to deposit the check will be seen as unreasonable.
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Brett Woodburn, Esq. is an attorney with Caldwell & Kearns and serves as general counsel to PAR. A substantial portion of his practice is dedicated to providing advice and counsel to real estate licensees and representing and defending real estate salespersons and brokers in civil lawsuits and licensing claims across the Commonwealth. He routinely counsels employers on employee relations issues as one of the voices of the PAR Legal Hotline. |
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