S-4198 _______________________________________________
SENATE BILL NO. 6617
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State of Washington 50th Legislature 1988 Regular Session
By Senator Talmadge
Read first time 1/27/88 and referred to Committee on Financial Institutions & Insurance.
AN ACT Relating to escrow; adding new sections to chapter 18.44 RCW; prescribing penalties; and providing an effective date.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. As used in sections 1 through 3 of this act:
(1) "Real property lender" means a bank, savings bank, savings and loan association, credit union, mortgage company, or other corporation, association, or partnership that makes loans secured by real property located in this state.
(2) "Escrow agent" includes not only those escrow agents as defined in RCW 18.44.010, but also includes any escrow agent that is, or is employed by, a bank, trust company, mutual savings bank, savings and loan association, credit union, insurance company, title insurance company or authorized agent of a title insurance company that is engaged in the title insurance business, or any federally approved agency or lending institution under the national housing act.
(3) "Collected" means, in reference to a draft or check, that such draft or check has been finally paid as provided in RCW 62A.4-213.
NEW SECTION. Sec. 2. In the process of closing any escrow, no escrow agent may pay out moneys from any escrow until all moneys from any new loan and from any other sources have been collected.
NEW SECTION. Sec. 3. (1) The buyer and seller of real property have the right to select the escrow agent that will close their real estate transaction. No real property lender may require as a condition to granting any loan that the borrower use the escrow services of the lender, a particular escrow agent, or the escrow services of any particular person or other real property lender.
(2) A real property lender may object to the selection of an escrow agent that has been made by a buyer and seller if the lender has reasonable cause to believe that the buyer and seller have not selected a competent provider of escrow services.
(3) No escrow agent or officer or employee of any escrow agent may pay or give or agree to pay or give any money, services, or object of value to any real estate broker or real estate agent or to any real property lender or officer or employee of any real property lender in return for the referral of any real estate escrow services.
NEW SECTION. Sec. 4. (1) Whenever it appears that any person is in violation of any provision of section 2 or 3 of this act, application may be made to the appropriate court for an order enjoining the person from engaging in or continuing to engage in such activity, and upon a showing that the person has engaged, or is about to engage, in any such activity, a permanent or temporary injunction, restraining order, or other appropriate order may be issued by the court.
(2) The attorney general and the prosecuting attorneys of the several counties shall be responsible for the enforcement of sections 2 and 3 of this act. Any other person affected by any violation of sections 2 and 3 of this act may bring a civil action against parties violating it.
(3) Any person who violates the provisions of sections 2 and 3 of this act is subject to a civil penalty of five thousand dollars for each violation.
NEW SECTION. Sec. 5. The director may adopt any rules necessary to implement sections 1 through 4 of this act.
NEW SECTION. Sec. 6. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.
NEW SECTION. Sec. 7. Sections 1 through 5 of this act are each added to chapter 18.44 RCW.
NEW SECTION. Sec. 8. This act shall take effect July 1, 1988.