California Financial Code 17421.5 – (a) Notwithstanding Section 17420, a licensee may charge a fee …
(a) Notwithstanding Section 17420, a licensee may charge a fee for administering an escrow that has been postponed for at least two months from the most recent closing date agreed upon by the parties in the written instructions or has been canceled if all of the following requirements are met:
(1) The postponement or cancellation resulted from the acts or omissions of the parties to the escrow transaction.
Terms Used In California Financial Code 17421.5
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
(2) The fee was disclosed in the written instructions in not less than 8-point bold type on the face or front page of the instructions.
(3) The principal parties to the escrow transaction have executed the written fee instructions by initialing those instructions.
(b) This section shall apply to written instructions made on and after January 1, 2008.
(Added by Stats. 2007, Ch. 237, Sec. 4. Effective January 1, 2008.)