What must occur before a title agent can disburse any funds?

Before a title agent can disburse any funds, it is essential that those funds correspond to a deposit of an equivalent amount. This is necessary to ensure that the funds being disbursed are secured and accounted for, aligning with the principle of safeguarding clients' money. By requiring that the amount to be disbursed matches a previously deposited amount, the title agent helps to prevent the mishandling of funds and ensures greater transparency and accountability in financial transactions.

This practice protects all parties involved in a real estate transaction because it minimizes the risk of fraud or financial mismanagement. It is a fundamental aspect of managing trust accounts and adhering to regulatory standards, ensuring that the disbursement process is orderly and legally compliant. In short, this requirement is crucial for maintaining financial integrity and fostering trust in real estate dealings.