Delaware Code Title 24 Sec. 2923 – Deposits and escrow accounts; accounting; records inspection and …
(a) Every broker shall establish and maintain an escrow account or accounts in a federally insured banking institution which has offices within the State.
(1) Accounts shall be opened in the name of the brokerage organization and designated as an escrow account.
(2) The broker shall be a signatory on each such account.
(3) Except for the minimum balance required by the bank and money to cover bank fees, each account shall be used only for escrow deposits, earnest money deposits, rental money or other moneys in which broker’s customers or clients have an interest where such money is to be held by broker in accordance with the terms of a real estate services transaction.
Terms Used In Delaware Code Title 24 Sec. 2923
- agent: means a licensee functioning as a party in an agency relationship created according to subchapter II of this chapter as an independent contractor and not as a fiduciary. See Delaware Code Title 24 Sec. 2902
- Broker: means any individual who holds a broker license from the Commission and who for a compensation or valuable consideration, is self-employed or is employed directly or indirectly by a brokerage organization to sell or offer to sell, or to buy or offer to buy, or to negotiate the purchase, sale, or exchange of real estate, or to lease or rent or offer for rent any real estate, or to negotiate leases or rental agreements thereof or of the improvements thereon for others. See Delaware Code Title 24 Sec. 2902
- Brokerage organization: means that individual or business entity which is not licensed but is acting as a broker under § 2901(c) of this title and is the trade name under which the broker operates. See Delaware Code Title 24 Sec. 2902
- Commission: means the Delaware Real Estate Commission. See Delaware Code Title 24 Sec. 2902
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Escrow account: means a separate account established by the brokerage organization used solely for moneys in which a broker's customers or clients have an interest in accordance with the terms of a real estate services transaction. See Delaware Code Title 24 Sec. 2902
- Licensee: means an individual licensed under this chapter as a broker, associate broker or salesperson without implying what legal relationship they have with a customer or client. See Delaware Code Title 24 Sec. 2902
- Real estate services: means those activities performed by a licensee as defined in this chapter. See Delaware Code Title 24 Sec. 2902
- State: means the State of Delaware. See Delaware Code Title 24 Sec. 2902
(b) All escrow deposits, earnest money deposits, rental money or other moneys accepted by a licensee in accordance with the terms of a real estate services transaction shall be accounted for in full upon the signing of a written agreement by all parties and maintained through the consummation or termination of the real estate services transaction. All moneys held by broker shall be disbursed in accordance with the terms of the transaction unless otherwise agreed upon in writing by the parties to the transaction or ordered by a court.
(c) All escrow deposits accepted by a licensee in accordance with the terms of a real estate services transaction shall be accepted in the name of the brokerage organization unless the parties have agreed to a different third-party escrow agent.
(d) Every licensee, upon the signing of a written agreement by all parties to a real estate services transaction, shall promptly pay over the escrow deposit, earnest money deposit, rental money or other moneys as specified in the transaction. The broker shall deposit the moneys into the broker’s escrow account within 72 hours of the signing of the written agreement by all parties, or by the dates defined therein, excluding weekends and federal holidays.
(e) The broker shall have accessible at the broker’s approved place of business, all books, records, written agreements and other necessary documents to determine the adequacy of the escrow account or accounts. These accounts and records shall be opened to inspection or audit by the Commission and its duly authorized agents at the broker’s approved place of business during regular business hours.
24 Del. C. 1953, § ?2920B; 57 Del. Laws, c. 151; 67 Del. Laws, c. 121, § ?23; 70 Del. Laws, c. 186, § ?1; 71 Del. Laws, c. 103, § ?4; 78 Del. Laws, c. 166, § ?1;