66-27-506 - Escrow of deposits. - Tennessee Statutes

66-27-506. Escrow of deposits.

Any deposit made in connection with the purchase or reservation of a unit from a declarant shall be placed in escrow and held in this state in an account designated solely for that purpose by a licensed title insurance company or agent of the licensed title insurance company, an attorney, a licensed real estate broker, or an independent bonded escrow company, and shall be deposited in an institution whose accounts are insured by a governmental agency or instrumentality, or any other lawful escrow or trust account, until:

     (1)  Delivered to the declarant at closing;

     (2)  Delivered to the declarant because of purchaser's default under a contract to purchase the unit;

     (3)  Refunded to the purchaser;

     (4)  Interpleaded into a court of appropriate jurisdiction; or

     (5)  Disbursed pursuant to a final order of a court of appropriate jurisdiction.

[Acts 2008, ch. 766, § 1.]