The escrow provisions of RESPA generally limit the amount that may be maintained in escrow
accounts, and they require escrow account statements.
Moreover, some of the escrow applications--including both the allegation and shared-interest escrows described above--create the possibility of orphaned escrow deposits that remain eternally locked in escrow
because the requisite conditions for release are never met.
(For more on escrow agents, see the box "Choosing an Escrow Vendor' on page 68.) And, as explained ahead, the escrow agent also can verify and test the items in escrow
The amount of time to hold funds in escrow
is a company decision since the IRS can still audit amended returns after processing refunds.
In Murray,(6) more than 75% of the purchase price of stock was placed in escrow
as security for the sellers' agreement to refrain from entering a competing business for five years.
Attorneys are now relieved of all the time consuming escrow fund management obligations and their clients receive the highest security through bonded protection for the funds they put in escrow
, at little or even no net cost."
The bank holds assets in escrow
and disburses them when a performance or commitment is delivered upon.
* Verification -- In the event of a deposit release, can the technology be quickly and successfully recreated from the materials that reside in escrow
* When the policy transfer is official, the funds in escrow
are wired to the insured.
The sales proceeds are placed in escrow
; T assigns the sales contract to qualified intermediary Q.