Closing and Escrow in Missouri
MO Rev Stat § 381.022.5 states that a title insurance agent may only handle escrow if it is being done in connection with issuing a title insurance policy. In other words, a title insurance agent cannot do any uninsured closings. No CPLs can be issued unless the title insurance agent is handling the funds.
381.410 of the MO Title Insurance law actually contains a definition for settlement agents that may be used in conjunction with a closing which includes banks, lawyers, or “a person licensed under chapter 339” (which is basically real estate brokers). All of the provisions describing the duties of a settlement agent have been repealed. It can either be speculated that the legislature did this because they wanted that practice to stop or that these authorized parties could not be regulated under the title insurance law because they were already governed by other rules.
The broker may be correct that nothing prohibits them from handling escrow, but I would still think that does not make it mandatory on anyone’s part absent a contract that requires it.
There is a case about this from the early 90s where real estate brokers were holding themselves out as escrow companies. The court basically said they could act as escrow companies and fill in standardized forms, but were otherwise engaging in the practice of law if they drafted deeds or any other customized forms. In re First Escrow, Inc., 840 S.W.2d 839, 841 (Mo. 1992)
Payment Customs
(02/11/2015)
- Seller pays for the Owner’s policy in Western MO; Buyer pays for the Owner’s policy in Eastern MO.
- No Transfer tax in MO; Recording fees are paid by the Buyer for the deed, by the Borrower for the deed of trust, unless the contract specifies otherwise.
- Borrower pays for Survey if required by Lender. Buyer also pays for Survey if required for Buyer unless contract specifies otherwise.
- Closing fees generally split between Buyer and Seller.
