Section 696.582 - Escrow agent to hold certain compensation; conditions; notice of demand; disbursement of money; copy of notice to principal(1) An escrow agent shall hold, as provided in subsection (3) of this section, the amount of money or other property agreed to as compensation in a written real estate broker's or principal real estate broker's compensation agreement, if the escrow agent has at the office at which the escrow is being closed, before the date of closing: (a) A written notice of compensation, signed by the real estate broker or principal real estate broker who is authorized under rules adopted by the Real Estate Commissioner to enter into the compensation agreement and sign the written notice of compensation, in substantially the form set out in subsection (2) of this section; and(b) The written closing instructions of the principals which do not honor the amount and terms of payment in the notice of compensation.(2) The notice of compensation required by subsection (1) of this section may not be incorporated into any document of agreement between the principals or between the broker and a principal, and must be in substantially the following form: ______________________________________________________________________________
Notice of
Real Estate Compensation
To: ____________
(Name of Escrow Company)
Re: ____________
(Names of Principals to Transaction)
Your Escrow Number: ______
The undersigned real estate broker or principal real estate broker states that such broker has a valid written compensation agreement with ______ (Name of Principal), one of the principals to the transaction referred to above, and that such principal is obligated to pay the broker the compensation on account of that transaction. The compensation amount is $_____ and is to be paid on the following terms: _________. Request is hereby made that the compensation be paid in that amount and on those terms, out of escrow and as a part of your closing of that transaction.
__________________
(Name and Signature of Real Estate Broker or Principal Real Estate Broker)
______________________________________________________________________________
(3) An escrow agent in a transaction described in subsection (1) of this section may only disburse the moneys or other property to:(a) The principal real estate broker and principal, based upon a written agreement between those parties and directed to the escrow agent as disbursement instructions;(b) Any persons, as directed by order of a court of competent jurisdiction; or(c) The court, upon filing by the escrow agent of an interpleader action for the moneys or property.(4) If the filing of a notice of compensation with an escrow agent under subsection (1) of this section is made more than 10 days prior to the scheduled closing date, the real estate broker or principal real estate broker filing the notice shall deliver a copy of the notice to the principal identified in the notice. If the notice is filed within 10 days of the scheduled closing date, the escrow agent shall provide a copy of the notice to the principal identified in the notice at the time of closing.Amended by 2017 Ch. 234, § 25, eff. 1/1/2018.1985 c.449 §2; 2001 c.300 §41; 2007 c. 337, § 1