|SB 0664||Real Estate Settlement Agents Shall Require Certified Funds|
|LR Number:||S2040.07T||Fiscal Note:||2040-07|
|Committee:||Financial and Governmental Operations|
|Last Action:||07/10/96 - Signed by Governor|
|Effective Date:||August 28, 1996|
CCS/SB 664 - This act repeals Sections 442.605, 442.610, and 442.615, RSMo, relating to real estate settlement agents, and enacts two new sections relating to the same subject in Chapter 381, RSMo, Title Insurance Law.
A settlement agent who accepts closing funds of more than $10,000 but less than $1,000,000 must be paid in certified funds unless the buyer, seller, or lender is a financial institution. The settlement agent is required to record all closing security instruments within three business days of receipt of the certified funds. The provisions of Section 381.412 do not apply to checks drawn on the escrow accounts of licensed real estate brokers (see Section 339.105, RSMo), Missouri title insurers, Missouri title insurance agencies, Federal agencies, the State of Missouri and political subdivisions of the State of Missouri. Fees paid to a federal agency, payments for private mortgage insurance, and payments to satisfy an existing deed of trust are also exempted.
No title insurer, title insurance agency, or title insurance agent shall make a withdrawal of $10,000 or more from an escrow account unless a corresponding deposit of funds into the escrow account was made at least 10 days prior to the withdrawal. Penalties that may be assessed by the Director of the Department of Insurance are detailed.
Section 1 of this act states that any continuing education from another Missouri profession that relates to the topic of insurance shall meet the continuing education requirements for insurance agents and insurance brokers (see Section 375.020, RSMo).
This act is similar to SB 405 from 1995.
RONALD J. LEONE