339.105. Separate bank escrow accounts required--service charges for account may be made by personal deposit by broker, amount allowed.
Separate bank escrow accounts required--service charges for accountmay be made by personal deposit by broker, amount allowed.
339.105. 1. Each broker who holds funds belonging to another shallmaintain such funds in a separate bank account in a financial institutionwhich shall be designated an escrow or trust account. This requirementincludes funds in which he or she may have some future interest or claim.Such funds shall be deposited promptly unless all parties having aninterest in the funds have agreed otherwise in writing. No broker shallcommingle his or her personal funds or other funds in this account with theexception that a broker may deposit and keep a sum not to exceed onethousand dollars in the account from his or her personal funds, which sumshall be specifically identified and deposited to cover service chargesrelated to the account.
2. Each broker shall notify the commission of his or her intent notto maintain an escrow account, or the name of the financial institution inwhich each escrow or trust account is maintained, the name and number ofeach such account, and shall file written authorization directed to eachfinancial institution to allow the commission or its authorizedrepresentative to examine each such account; such notification andauthorization shall be submitted on forms provided therefor by thecommission. A broker shall notify the commission within ten business daysof any change of his or her intent to maintain an escrow account, thefinancial institution, account numbers, or change in account status.
3. In conjunction with each escrow or trust account a broker shallmaintain books, records, contracts and other necessary documents so thatthe adequacy of said account may be determined at any time. The accountand other records shall be provided to the commission and its dulyauthorized agents for inspection at all times during regular business hoursat the broker's usual place of business.
4. Whenever the ownership of any escrow moneys received by a brokerpursuant to this section is in dispute by the parties to a real estatesales transaction, the broker shall report and deliver the moneys to thestate treasurer within three hundred sixty-five days of the date of theinitial projected closing date in compliance with sections 447.500 to447.595, RSMo. The parties to a real estate sales transaction may agree inwriting that the funds are not in dispute and shall notify the broker whois holding the funds.
5. A broker shall not be entitled to any money or other money paid tohim or her in connection with any real estate sales transaction as part orall of his or her commission or fee until the transaction has beenconsummated or terminated, unless agreed in writing by all parties to thetransaction.
6. When, through investigations or otherwise, the commission hasreasonable cause to believe that a licensee has acted, is acting or isabout to act in violation of this section, the commission may, through theattorney general or any assistants designated by the attorney general,proceed in the name of the commission to institute suit to enjoin any actor acts in violation of this section.
7. Any such suit shall be commenced in either the county in which thedefendant resides or in the county in which the defendant has acted, isacting or is about to act in violation of this section.
8. In such proceeding, the court shall have power to issue suchtemporary restraining or injunction orders, without bond, which arenecessary to protect the public interest. Any action brought under thissection shall be in addition to and not in lieu of any other provisions ofthis chapter. In such action, the commission or the state need not allegeor prove that there is no adequate remedy at law or that any individual hassuffered any economic injury as a result of the activity sought to beenjoined.
(L. 1978 S.B. 811, A.L. 1981 S.B. 16, A.L. 1986 H.B. 1511, A.L. (L. 1978 S.B. 811, A.L. 1981 S.B. 16, A.L. 1986 H.B. 1511, A.L. 1987 S.B. 175, A.L. 2003 H.B. 600 merged with S.B. 675, A.L. 2004 H.B. 985)