§ 34-38-8 - Escrow account. - Rhode Island Statutes

SECTION 34-38-8

   § 34-38-8  Escrow account. – All money paid or advanced by a purchaser or lessee or prospective purchaser orprospective lessee in respect of any lot, parcel, unit, or interest in anysubdivision, the advertisement, offering, or disposition of which is controlledby this chapter, or such portion thereof as the department may determine issufficient for the protection of the interests of the purchaser or lessee,shall be deposited by the seller or lessor in an escrow account, approved bythe department, in a bank doing business in this state. The money shall remainin such escrow account until:

   (1) A proper and valid release is obtained therefor from thepurchasers;

   (2) The owner or subdivider or the purchaser or lessee hasdefaulted under their contract for sale or lease and the department or thecourt has made a determination as to the disposition of the money; or

   (3) The owner or subdivider or the seller or lessor ordersthe return of the money to the purchaser or lessee.