09. Basic Concepts of Escrows & Minimum Standards

This course is intended to familiarize participants with basic concepts of escrows, the duties of the escrow agent in a real estate transaction, and minimum standards for escrow accounting. State-specific requirements and guidelines for lawyer trust accounts are also discussed. At the completion of this course, participants will be able to describe the important role the escrow agent fulfills in the real estate transaction, particularly pertaining to the agent’s fiduciary duty. Participants will be able to identify the basic types of escrow accounts. They will also be able to explain the concept of “good funds” vs. “collected funds.” Participants will be able to articulate minimum standards of escrow accounting set forth under Pillar #2 of ALTA’s Best Practices, Rule 1.15 of the Mississippi Rules of Professional Conduct and the Mississippi Lawyer Trust Account Guidelines. They will be able to describe the basic types of post-closing escrows. Finally, they will be able to articulate the basics components of a good escrow agreement, as well as good business practices regarding escrows.