§ 34-38-8 — § 34-38-8. Escrow account.

§ 34-38-8. Escrow account.

All money paid or advanced by a purchaser or lessee or prospective purchaser or prospective lessee in respect of any lot, parcel, unit, or interest in any subdivision, the advertisement, offering, or disposition of which is controlled by this chapter, or such portion thereof as the department may determine is sufficient for the protection of the interests of the purchaser or lessee, shall be deposited by the seller or lessor in an escrow account, approved by the department, in a bank doing business in this state. The money shall remain in such escrow account until:

(1) A proper and valid release is obtained therefor from the purchasers;

(2) The owner or subdivider or the purchaser or lessee has defaulted under their contract for sale or lease and the department or the court has made a determination as to the disposition of the money; or

(3) The owner or subdivider or the seller or lessor orders the return of the money to the purchaser or lessee.

Legislative History

P.L. 1972, ch. 56, § 1.