6-840. Prohibitions; definitions
A. An escrow agent shall not accept any escrow in which a participant in the escrow is an affiliate of the escrow agent unless:
1. The affiliation is disclosed to all nonaffiliated participants in writing by the escrow agent.
2. Use of the affiliated escrow agent is not required by the affiliate as a condition of making a loan or entering into any other agreement with the nonaffiliated participants.
B. For the purpose of this section:
1. " Controlled escrow business" means the handling of an escrow by an escrow agent where an affiliate of the escrow agent is a participant in the escrow transaction.
2. " Participant" means the buyer, seller, lender, mortgage broker, mortgage banker, real estate broker or real estate salesman or any person who is a party to the escrow transaction.Section: Previous 6-833.01 6-834 6-835 6-836 6-837 6-838 6-839 6-840 6-841 6-841.01 6-841.02 6-841.03 6-843 6-846 6-846.01 Next
Last modified: October 13, 2016