Confusion regarding the handling, holding, and distribution of earnest money by title companies, escrow agents, and real estate licenses has led to newly enacted legislation in the state of Washington. SHB 1730 provides clear guidelines of when and how a holder of earnest money in a residential real estate transaction distributes it upon receiving written demand for part or all of the earnest money. In addition to providing timelines, the statute provides guidance on when money may be released or when an interpleader action becomes necessary. SHB 1730 also provides the necessary forms holders may use to issue interpleader summons, complaints, and permits. SHB 1730 will take effect on July 24, 2015.
Copyright: ARELLO registered. Condensed from ARELLO’S Boundaries magazine (2015 June)