Adopt and maintain appropriate written procedures and controls for Escrow Trust* Accounts allowing for electronic verification of reconciliation. (*”Trust” and “Escrow” used interchangeably.)
PURPOSE: Appropriate and effective escrow controls and staff training help title and settlement companies meet client and legal requirements for the safeguarding of client funds. These procedures ensure accuracy and minimize the exposure to loss of client funds. Settlement companies may engage outside contractors to conduct segregation of trust accounting duties.