Section 35.323. Responsibility for escrow in cobrokerage transactions

(a) If a sales deposit is tendered by a buyer to the listing broker rather than to the selling broker, the listing broker shall assume the escrow duty.

(b) If a sales deposit is tendered by a buyer to the selling broker with the buyer having prior notice that the selling broker intends to deliver the deposit to the listing broker, the listing broker shall assume the escrow duty. The selling broker shall require the buyer to acknowledge in writing, prior to his signing the agreement of sale, that the prior notice contained the following information:

(1) The name of the listing broker.

(2) That the selling broker’s acceptance of the buyer’s deposit is on behalf of the listing broker as subagent for the listing broker.

(3) That the listing broker is a licensed real estate broker who is required to hold the deposit in escrow.

(4) That the listing broker be designated as payee, if the buyer’s deposit is in the form of a check.

(c) If a sales deposit is tendered by a buyer to the selling broker without the buyer having the prior notice in subsection (b), the selling broker shall assume the escrow duty.

The provisions of this § 35.323 adopted February 24, 1989, effective February 25, 1989, 19 Pa.B. 781.

Notation

Authority

The provisions of this § 35.323 issued under the Real Estate Licensing and Registration Act (63 P. S. § § 455.101—455.902).