What must title agents do with escrow funds once they are received?

Title agents have a legal obligation to handle escrow funds with utmost care and professionalism. Once these funds are received, they must be deposited into a separate fiduciary trust account. This requirement ensures that the funds are kept separate from the title agent's personal or business funds, thereby safeguarding them for the intended purpose of the transaction.

By placing the funds in a fiduciary trust account, title agents comply with state regulations and industry standards, which are designed to protect consumers and maintain the integrity of the escrow process. This separation helps prevent any unauthorized use of the funds and mitigates the risk of misappropriation.

Managing escrow funds in this way also helps assure all parties involved in the transaction that their money is being handled responsibly and transparently, reinforcing the trust placed in the title agent or agency.