Florida Real Estate Commission Recently Approved....Verify Escrow Deposits!

I read this. Interesting...I guess this was enacted to fix a problem.

I don't understand what is extra paperwork or what is different than you have been doing in the past...

When I give a deposit to the title company, they sign for it.  When a customer is supposed to bring an escrow deposit to the title company I always follow up, via email, (generally because it's so much easier) asking has it been received.  And that's after making the customer aware they will be out of contract if they do not do so.    I don't see what is different.  If the customer doesn't bring the escrow to the title company, I sure don't wait 10 days to let them know we're out of contract!       And if I were on the listing side and the buyer was required to make an escrow deposit delivery I wouldn't be waiting for someone to call me and tell me, I'd be on the phone or in email requesting if it were made.   It's a part of your duties...so I don't understand... what's so different?  

Can you give me a link to the new ruling that states you need to verify the actual deposit of funds into the bank and not the delivery?  I went to the site and could not find it.    Thanks! 

Ok, that's what I had read last night.  I think you are confused about the word 'deposit'.  IMO, as I read it, they are not talking about verification of the deposit being made into the bank.  They are talking about verification that any escrow deposits due on contract were delivered.   A copy of the check with a signature of the escrow agent is written confirmation.  A receipt is written confirmation.  If you are the escrow agent, a copy of the stamped deposit slip is written confirmation.  You can just fax or scan/email those things.  If there are additional escrow deposits due, then it would be your responsibility to make sure those deposits were received by the escrow agent.  An email is written confirmation.

From my perspective, nothing has changed except they have written it down that it is the broker's responsibility to follow up on the deposits and notify the parties as to what has or has not transpired as per the contract conditions.   As for the issue of it being the broker's responsibility, that's a given.  Everything is the broker's responsibility.  The transactions are yours... while you have sales associates doing the work, the ultimate ownership and responsibility of the transactions lies with the broker.

I going to assume this had to actually be written into the regs because some people aren't following up on the contract contingencies and making sure their customers are actually bringing funds to the title company when it says that escrow deposits or additional escrow deposits would be made with in a certain time frame.

I don't want this to turn into something other than two professionals making a clarification.  I did call the FAR hotline, was on hold for 20 minutes, and I'm sorry, but your broker is incorrect.  The law reads that the deposit has been received.  When they use the words "deposit has been made" further in the ruling what they are talking about is that the escrow deposit has been delivered to the escrow agent as per the terms of the contract.  (meaning, the escrow deposit has been made/delivered) So, if you have on the contract that you have in your possession an escrow deposit (cash or check or money order) you need to have a written receipt or signed copy of the check by the escrow company showing you delivered it.  If the contract states additional escrow deposit is to be made within a certain period of time, then it is up to the broker (via sales associate is fine) to have verification in writing (email is writing, fax is writing) that the additional deposit is received.  It is not their intention that you need to have in writing that the escrow company has completed their duties that they are governed by to verify that an actual deposit into an escrow account has been made.   IMO, the ruling changes no duties, puts no additional liability on the broker.  It's just making sure the broker understands they need to have the files complete with proof of the delivery of the escrow 'deposit'.    It is clarifying that it is the duty of the broker writing the contract and stating there in that a deposit was taken by them and that their buyer will perform and place additional deposits actually follows up on it and notifies the other parties if their customer did not follow through.  It is not the duty of the other parties to track down if it's actually been done.

I guess they'll have to go back in and rewrite it so there is no confusion.  :)

I agree..it's something you would think they would be doing to begin with...creating a paper trail and verifying that all contract terms are being adheared to but you know how that goes, lol.

I'm glad we got it all cleared up.  And I agree, they will probably have to rewrite it so there is no confusion about the whole thing.

As for the hotline, well, one attorney's opinion is often different than anothers.  And they didn't all graduate in the top 10% of the class, lol.

Enjoy and happy selling to you also!   I swear if you send me customers I'll take good care of 'em.  :)

Oh, wait.  You're in Daytona...it's a hop skip and a jump for you.  I don't usually 'do' Daytona...I don't know it well enough, so if I have customers I can refer them down to you.  If you need the scoop or heads up on anyone you are dealing with up here, feel free to give a call or email. 

Enjoy!