Section 381.412

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS

Chapter 381

Effective - 01 Jan 2001, 5 histories, see footnote   (history) 

  381.412.  Settlement agents, accepting funds, exemption — title insurer, deposit of funds — violation, fine. — 1. A settlement agent who accepts funds of more than ten thousand dollars for closing a sale of an interest in real estate shall require a buyer, seller or lender who is not a financial institution to convey such funds to the settlement agent as certified funds. A check:

  (1) Drawn on an escrow account of a licensed real estate broker, as regulated and described in section 339.105, RSMo;

  (2) Drawn on an escrow account of a title insurer or title insurance agency licensed to do business in Missouri;

  (3) Drawn on an agency of the United States of America, the state of Missouri or any county or municipality of the state of Missouri; or

  (4) Drawn on an account by a financial institution;

  shall be exempt from the provisions of this section.

  2. No title insurer, title insurance agency or title insurance agent, as defined in section 381.009, shall make any payment, disbursement or withdrawal in excess of ten thousand dollars from an escrow account which it maintains as a depository of funds received from the public for the settlement of real estate transactions unless a corresponding deposit of funds was made to the escrow account for the benefit of the payee or payees:

  (1) At least ten days prior to such payment, disbursement or withdrawal;

  (2) Which consisted of certified funds; or

  (3) Consisted of a check made exempt from this section by the provisions of subsection 1 of this section.

  3. If the director finds that a settlement agent, title insurer, title insurance agency or title insurance agent has violated any provisions of this section, the director may assess a fine of not more than two thousand dollars for each violation, plus the costs of the investigation. Each separate transaction where certified funds are required shall constitute a separate violation. In determining a fine, the director shall consider the extent to which the violation was a knowing and willful violation, the corrective action taken by the settlement agent to ensure that the violation will not be repeated, and the record of the settlement agent in complying with the provisions of this section.

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(L. 1996 S.B. 664, A.L. 1997 S.B. 148, A.L. 2000 S.B. 894)

Effective 1-1-01

(2002) Senate Bill 894 provision declared unconstitutional as a violation of the clear title requirement of Art. III, Section 23. Home Builders of Greater St. Louis v. State, 75 S.W.3d 267 (Mo.banc).