381.412. Settlement agents, accepting funds, exemption--title insurer, deposit of funds--violation, fine. - Missouri Statutes

Settlement agents, accepting funds, exemption--title insurer, depositof funds--violation, fine.

381.412. 1. A settlement agent who accepts funds of more than twothousand five hundred dollars for closing a real estate transaction shallrequire a buyer, seller, or lender who is not a financial institution toconvey such funds to the settlement agent as certified funds. A checkshall be exempt from the provisions of this section if drawn on:

(1) An escrow account of a licensed real estate broker, as regulatedand described in section 339.105, RSMo; or

(2) An escrow account of a title insurer or title insurance agencylicensed to do business in Missouri; or

(3) An agency of the United States of America, the state of Missouri,or any county or municipality of the state of Missouri; or

(4) An account by a financial institution.

2. It is unlawful for any title insurer, title agency, or titleagent, as defined in section 381.009*, to make any payment, disbursement orwithdrawal from an escrow account which it maintains as a depository offunds received from the public for the settlement of real estatetransactions unless a corresponding deposit of funds was made to the escrowaccount for the benefit of the payee or payees:

(1) At least ten days prior to such payment, disbursement, orwithdrawal; or

(2) Which consisted of certified funds; or

(3) Consisted of a check made exempt from this section by theprovisions of subsection 1 of this section.

3. A violation of any provision of this section is a level twoviolation under section 374.049, RSMo.

(L. 1996 S.B. 664, A.L. 1997 S.B. 148, A.L. 2000 S.B. 894, A.L. 2007 S.B. 66, A.L. 2008 S.B. 1009)

Effective 6-10-08

*Section 381.009 was repealed by S.B. 66, 2007.