QUESTION
When a title company closes what happens to all the money?
Asked on Oct 16th, 2012 on Business Law - Maryland
More details to this question:
Title company closed. They had excess monies from borrowers and sellers but did not turn that money over to the state. Is there a requirement to do this? Monies were for escrows, tax over payments, insurance over payments, etc. Is there a penalty if they did not?
1 ANSWER
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As a general matter, there is no penalty for failure to remit escheated funds. It is not clear from your inquiry why these funds escheated. Normally, if the buyer of real property remits more than the total closing costs and charges to an escrow agent, the excess funds belong to the buyer, not the state. It is the escrow agent's duty to track down the party entitled to the funds.
Answered on Oct 16th, 2012 at 9:50 AM