The 2023 Florida Statutes (including Special Session C)

Title XXXVII
INSURANCE

Chapter 626
INSURANCE FIELD REPRESENTATIVES AND OPERATIONS

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F.S. 626.8473

626.8473 Escrow; trust fund.—

(1) A title insurance agency may engage in business as an escrow agent as to funds received from others to be subsequently disbursed in connection with real estate closing transactions involving the issuance of title commitments, policies of title insurance, or guarantees of title, provided that a licensed and appointed title insurance agency complies with the requirements of s. 626.8419, including such requirements added after the initial licensure of the agency.

(2) All funds received by a title insurance agency as described in subsection (1) shall be trust funds received in a fiduciary capacity by the title insurance agency and shall be the property of the person or persons entitled thereto.

(3) All funds received by a title insurance agency to be held in trust shall be immediately placed in a financial institution that is located within this state and is a member of the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund. These funds shall be invested in an escrow account in accordance with the investment requirements and standards established for deposits and investments of state funds in s. 17.57, where the funds shall be kept until disbursement thereof is properly authorized.

(4) Funds required to be maintained in escrow trust accounts pursuant to this section shall not be subject to any debts of the title insurance agency and shall be used only in accordance with the terms of the individual, escrow, settlement, or closing instructions under which the funds were accepted.

(5) The title insurance agency shall maintain separate records of all receipts and disbursements of escrow, settlement, or closing funds.

(6) In the event that the department promulgates rules necessary to implement the requirements of this section pursuant to s. 624.308, the department shall consider reasonable standards necessary for the protection of funds held in trust, including, but not limited to, standards for accounting of funds, standards for receipt and disbursement of funds, and protection for the person or persons to whom the funds are to be disbursed.

(7) A title insurance agency, or any officer, director, or employee thereof, or any person associated therewith as an independent contractor for bookkeeping or similar purposes, who converts or misappropriates funds received or held in escrow or in trust by such title insurance agency, or any person who knowingly receives or conspires to receive such funds, commits:

(a) If the funds converted or misappropriated are $300 or less, a misdemeanor of the first degree, punishable as provided in s. 775.082 or s. 775.083.

(b) If the funds converted or misappropriated are more than $300, but less than $20,000, a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084.

(c) If the funds converted or misappropriated are $20,000 or more, but less than $100,000, a felony of the second degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084.

(d) If the funds converted or misappropriated are $100,000 or more, a felony of the first degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084.

(8) An attorney shall deposit and maintain all funds received in connection with transactions in which the attorney is serving as a title or real estate settlement agent into a separate trust account that is maintained exclusively for funds received in connection with such transactions and permit the account to be audited by its title insurers, unless maintaining funds in the separate account for a particular client would violate applicable rules of The Florida Bar.

History.—s. 24, ch. 85-185; s. 1, ch. 86-286; s. 1, ch. 89-305; s. 134, ch. 90-363; s. 114, ch. 92-318; s. 3, ch. 98-409; s. 971, ch. 2003-261; s. 3, ch. 2012-206; s. 28, ch. 2023-144.

F.S. 626.8473 on Google Scholar

F.S. 626.8473 on Casetext

Amendments to 626.8473

Arrestable Offenses / Crimes under Fla. Stat. 626.8473

Level: Degree
Misdemeanor/Felony: First/Second/Third

S626.8473 7a - FRAUD - RECEIVE MISAPPROP FUNDS 300 DOLS OR LESS - M: F

S626.8473 7a - EMBEZZLE - INSUR AGENT MISAPPROP FUNDS 300 DOLS OR LESS - M: F

S626.8473 7b - FRAUD - RECV MISAPPROP FUNDS OVER 300 UND 20K DOLS - F: T

S626.8473 7b - EMBEZZLE - MISAPPROPRIATE FUNDS OVER 300 UND 20K DOLS - F: T

S626.8473 7c - FRAUD - RECV MISAPPROP FUNDS 20K UNDER 100K DOLS - F: S

S626.8473 7c - EMBEZZLE - MISAPPROP FUNDS 20K UNDER 100K DOLS - F: S

S626.8473 7d - FRAUD - RECEIVE MISAPPROP FUNDS 100K DOLS OR MORE - F: F

S626.8473 7d - EMBEZZLE - MISAPPROP FUNDS 100K DOLS OR MORE - F: F

Annotations, Discussions, Cases:

Cases from cite.case.law:

R. COHEN, v. CHICAGO TITLE INSURANCE CO., 53 So. 3d 331 (Fla. Dist. Ct. App. 2010)

. . . licensed title insurance agent or agency of funds held in trust by the agent or agency pursuant to s. 626.8473 . . . limited situation where the title insurer’s agent misappropriates trust funds, as defined by section 626.8473 . . . So.2d at 996 (“Not all title insurance transactions involve funds held in trust pursuant to section 626.8473 . . . , and if the funds are not held in trust pursuant to section 626.8473, we cannot impute liability to . . . Section 626.8473(1) specifically defines trust funds as funds received by a title insurance agent “from . . .

WINKLER, v. LAWYERS TITLE INSURANCE CORP., 41 So. 3d 414 (Fla. Dist. Ct. App. 2010)

. . . and that the appellants’ escrow deposits did not constitute funds held in trust pursuant to section 626.8473 . . . licensed title insurance agent or agency of funds held in trust by the agent or agency pursuant to s. 626.8473 . . . Section 626.8473, in turn, provides in relevant part as follows: (1) A title insurance agent may engage . . . The appellants also asserted that subsection 626.8473(1) permits a title agent to receive escrow deposits . . . Subsection 626.8473(1) defines those funds as only those received by a title insurance agent “from others . . .

In APPONLINE. COM, INC. v. HSA, 321 B.R. 614 (E.D.N.Y. 2003)

. . . . § 626.8473(3), regarding the deposit of funds by a title insurance agent and a Florida Regulation, . . .

I. HECHTMAN, v. NATIONS TITLE INSURANCE OF NEW YORK,, 840 So. 2d 993 (Fla. 2003)

. . . defalcation of funds by their licensed title agents if the funds are held in trust pursuant to section 626.8473 . . . nonattorney may not act as an escrow agent; however, the nonattorney may do so pursuant to section 626.8473 . . . it does not matter if their funds were held in escrow pursuant to the authority granted by section 626.8473 . . . Not all title insurance transactions involve funds held in trust pursuant to section 626.8473, and if . . . the funds are not held in trust pursuant to section 626.8473, we cannot impute liability to the insurer . . .

I. HECHTMAN v. NATIONS TITLE INSURANCE OF NEW YORK, INC., 767 So. 2d 505 (Fla. Dist. Ct. App. 2000)

. . . misappropriation by a licensed title insurance agent of funds held in trust by the agent pursuant to § 626.8473 . . .