Vermont § 2214 - Trust and escrow accounts

§ 2214. Trust and escrow accounts

• (a) Every real estate broker, within five banking days, shall deposit in a trust or escrow
  account in a bank or other financial institution licensed to do business in this State
  all earnest money and contract deposits held by him or her as a real estate broker
  in which the clients or other persons with whom the broker is dealing have an interest.
  Trust and escrow accounts shall be maintained separate and apart from a broker’s individual
  or office account. The broker shall maintain at the broker’s usual place of business,
  books, records, contracts, and other documents pertinent to or relating to the trust
  or escrow account and monies therein, which shall be open for inspection by the Commission
  and its duly authorized agents at the broker’s usual place of business during regular
  business hours. The broker shall notify the Commission, within 10 days after opening
  any trust or escrow account, of the bank or other financial institution in which the
  account is located. (b) If a deposit is reasonably expected to earn a substantial amount of interest, the
  broker shall, at the request of the person or persons making the deposit, place the
  deposit in an individual interest-bearing trust or escrow account for the benefit
  of the beneficial owner. In regard to individual interest-bearing trust and escrow
  accounts: (1) Unless otherwise agreed to in writing by all parties, the interest earned shall be
  applied to the purchase price due from the buyer if the sale is consummated, shall
  be returned to the buyer if the deposit is returned to the buyer, and shall be payable
  to the seller if the buyer defaults. Contracts shall carry this language conspicuously
  above the signature lines. (2) No checks shall be drawn against uncollected deposits in the account. (3) None of the contract deposits shall be withdrawn until the contract has been terminated
  by performance, or by operation of its own terms, or by agreement in writing between
  all parties involved in the contract, or by order of a court of competent jurisdiction. (c) If a deposit is not reasonably expected to earn a substantial amount of interest,
  the broker shall place the deposit in a pooled interest-bearing trust or escrow account
  and direct that the interest be remitted to the Vermont Housing Finance Agency in
  accordance with the provisions of 8 V.S.A. § 14210. (d) The broker shall inform the depositor whether funds are deposited into an individual
  account pursuant to subsection (b) of this section or in a pooled account pursuant
  to subsection (c) of this section. The broker shall retain a written statement of
  this disclosure signed by the beneficial owner of the account. (Added 1969, No. 283 (Adj. Sess.), § 12; amended 1985, No. 6, § 1; 1991, No. 86, § 4, eff. Jan. 1, 1992; 1999, No. 153 (Adj. Sess.), § 25, eff. Jan. 1, 2001; 2013, No. 138 (Adj. Sess.), § 14.)