HOUSE BILL NO. 1211 103RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE VOSS.
2743H.01I JOSEPH ENGLER, Chief Clerk
AN ACT To repeal section 339.105, RSMo, and to enact in lieu thereof one new section relating to separate bank escrow accounts maintained by brokers.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Section 339.105, RSMo, is repealed and one new section enacted in lieu 2 thereof, to be known as section 339.105, to read as follows: 339.105. 1. Each broker who holds funds belonging to another shall maintain such 2 funds in a separate bank account in a financial institution which shall be designated an escrow 3 or trust account. This requirement includes funds in which he or she may have some future 4 interest or claim. Such funds shall be deposited promptly unless all parties having an interest 5 in the funds have agreed otherwise in writing. No broker shall commingle his or her personal 6 funds or other funds in this account with the exception that a broker may deposit and keep a 7 sum [not to exceed one thousand dollars] in the account from his or her personal funds, which 8 sum: 9 (1) Shall be specifically identified and deposited to cover service charges related to 10 the account; and 11 (2) Shall not exceed one thousand dollars, excluding any interest accrued on the 12 sum as long as any payment of such interest is withdrawn from the account within thirty 13 days of receipt. 14 2. Each broker shall notify the commission of his or her intent not to maintain an 15 escrow account, or the name of the financial institution in which each escrow or trust account 16 is maintained, the name and number of each such account, and shall file written authorization 17 directed to each financial institution to allow the commission or its authorized representative
EXPLANATION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is intended to be omitted from the law. Matter in bold-face type in the above bill is proposed language. HB 1211 2
18 to examine each such account; such notification and authorization shall be submitted on 19 forms provided therefor by the commission. A broker shall notify the commission within ten 20 business days of any change of his or her intent to maintain an escrow account, the financial 21 institution, account numbers, or change in account status. 22 3. In conjunction with each escrow or trust account a broker shall maintain books, 23 records, contracts and other necessary documents so that the adequacy of said account may be 24 determined at any time. The account and other records shall be provided to the commission 25 and its duly authorized agents for inspection at all times during regular business hours at the 26 broker's usual place of business. 27 4. Whenever the ownership of any escrow moneys received by a broker pursuant to 28 this section is in dispute by the parties to a real estate sales transaction, the broker shall report 29 and deliver the moneys to the state treasurer within three hundred sixty-five days of the date 30 of the initial projected closing date in compliance with sections 447.500 to 447.595. The 31 parties to a real estate sales transaction may agree in writing that the funds are not in dispute 32 and shall notify the broker who is holding the funds. 33 5. A broker shall not be entitled to any money or other money paid to him or her in 34 connection with any real estate sales transaction as part or all of his or her commission or fee 35 until the transaction has been consummated or terminated, unless agreed in writing by all 36 parties to the transaction. 37 6. When, through investigations or otherwise, the commission has reasonable cause to 38 believe that a licensee has acted, is acting or is about to act in violation of this section, the 39 commission may, through the attorney general or any assistants designated by the attorney 40 general, proceed in the name of the commission to institute suit to enjoin any act or acts in 41 violation of this section. 42 7. Any such suit shall be commenced in either the county in which the defendant 43 resides or in the county in which the defendant has acted, is acting or is about to act in 44 violation of this section. 45 8. In such proceeding, the court shall have power to issue such temporary restraining 46 or injunction orders, without bond, which are necessary to protect the public interest. Any 47 action brought under this section shall be in addition to and not in lieu of any other provisions 48 of this chapter. In such action, the commission or the state need not allege or prove that there 49 is no adequate remedy at law or that any individual has suffered any economic injury as a 50 result of the activity sought to be enjoined. ✔
Statutes affected: