When is a closing agent not an escrow agent?

April 1, 2019 – In completing one of the Florida Realtors contracts, there are spaces for the escrow agent’s information, including name, address, and telephone number. Not only is this information required per 61J2 14.008(2)(b) of the Florida Administrative Code, aka your FREC rules, but it lets the buyer know where to place the deposit once due under the contract.

Separate and apart from that section of a contract, there is another section that addresses who chooses the closing agent.

The key: These are two separate roles.

Pragmatically, however, the same entity usually performs both functions – and that’s why the escrow vs. closing agent issue becomes confusing – and an assumption those roles are interchangeable isn’t a good one.

An example of what can go wrong

Source:   Meredith Caruso is Associate General Counsel for Florida Realtors

© 2019 Florida Realtor®

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rrickel

rrickel

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