535B.20 Disbursing from a trust account.
A licensee acting as a closing agent shall not make, in a real estate closing, a disbursement from a trust account on behalf of another person, unless the following conditions are met:
1. The cash, funds, money orders, checks, or negotiable instruments necessary for the disbursement have been transferred electronically to or deposited into the trust account of the closing agent and are available for withdrawal and disbursement, or have been physically received by the agent prior to disbursement and are intended for deposit no later than the next banking day after the date of disbursement.
2. Nothing in this section prohibits a closing agent licensee from advancing funds not exceeding one thousand dollars from a trust account or otherwise on behalf of a party to a real estate closing for the purpose of paying incidental fees, such as conveyance and recording fees, in order to effect and close the sale, purchase, exchange, transfer, encumbrance, or lease of residential real property that is the subject of the real estate closing.
2010 Acts, ch 1111, §11, 13
Referred to in §535B.19
Structure Iowa Code
Chapter 535B - MORTGAGE BANKERS, MORTGAGE BROKERS, AND CLOSING AGENTS
Section 535B.2A - Closing agents affiliated with attorneys.
Section 535B.3 - Registration.
Section 535B.4 - General licensing requirements.
Section 535B.4A - Individual registration requirements — fees.
Section 535B.5 - Granting and denial of license.
Section 535B.6 - Licensing of certain corporations.
Section 535B.6A - Change of name — change of control — notice and approval required.
Section 535B.7 - Disciplinary action.
Section 535B.7A - Prohibited acts.
Section 535B.8 - Operating without a license.
Section 535B.9 - Bonds required of license applicants.
Section 535B.9A - Continuing education requirements.
Section 535B.10 - Investigations and examinations.
Section 535B.11 - Servicing mortgages and payoffs.
Section 535B.12 - Payment processing.
Section 535B.13 - Civil enforcement authority.
Section 535B.14 - Administrative authority.
Section 535B.15 - Liability of state.
Section 535B.16 - Notice to administrator.
Section 535B.17 - Powers and duties of the administrator — waiver authority.
Section 535B.18 - Mortgage call reports.
Section 535B.19 - Trust account requirements for closing agents.