What is the primary requirement for funds deposited with a title agency?

The primary requirement for funds deposited with a title agency being identifiable on an individual basis is crucial for maintaining transparency and accountability in the handling of client funds. This means that all funds must be clearly distinguishable and tracked for each individual transaction or client. This practice ensures that the agency can accurately account for all funds, especially when it comes to disbursement or refunds.

Identifying funds on an individual basis helps protect both the agency and the clients. It reduces the risk of errors in managing funds and enhances the agency's ability to provide a clear accounting of transactions. Clients can rest assured that their money is being managed properly and can be easily accessed or returned when necessary. This requirement also aligns with regulatory standards designed to protect clients' financial interests in real estate transactions.