It is understood that in any real estate transaction, the title agent will receive and disburse escrow funds through an escrow account. Whoever disburses the funds has the fiduciary responsibility for the processing, safeguarding and accounting of these funds. To fulfill that responsibility adequate records and control procedures must be in place to protect the customer’s funds and ensure accurate records are kept on all transactions.
It is important that properly trained staff is available with the competency and integrity to properly handle accounting matters. Non-qualified personnel can render accounting controls and procedures ineffective. As we are all aware, the proposed CFPB Rule will require agents to follow Best Practices procedures which include control of escrow funds. Ask if your title agency is following the Best Practices and if safeguards and controls are in place to protect your client’s funds!