What action must be taken by a title agency if they receive funds for a transaction?

A title agency is responsible for handling funds received for a transaction with transparency and adherence to legal standards. When a title agency receives funds, such as earnest money or closing funds, they are required to hold these funds in a manner consistent with written instructions from the parties involved in the transaction. This ensures that the funds are safeguarded and used only for their intended purpose related to the transaction, such as disbursement at closing.

Holding the funds according to written instructions helps maintain the trust between the agency and its clients, establishing clear expectations for how and when the funds will be released. It also aligns with regulatory requirements designed to protect consumers and ensure proper accounting practices are followed within the title industry. This method of handling funds promotes operational integrity and legal compliance.