Washington Administrative Code

Payment of any fee required under chapter 18.44 RCW by a check that is dishonored or is an insufficient payment will be considered nonpayment. The license action for which the dishonored check or insufficient payment was tendered will not be completed by the department, and a non…

(1) The designated escrow officer is responsible for the custody, safety, and accuracy of entries of all required escrow records. He or she retains this responsibility even if he or she has assigned the duties of preparation, custody, recording or disbursing to another person or …

Yes, with the director's prior written consent designated escrow officers and branch designated escrow officers may supervise more than one location.[Statutory Authority: RCW 43.320.040 and 18.44.410. WSR 13-24-022, § 208-680-175, filed 11/22/13, effective 1/1/14. Statutory Autho…

(1)(a) You must notify the department within one business day of the loss of or change of your designated escrow officer and provide the department with the identity your proposed replacement designated escrow officer within five business days.(b) You may not accept new clients o…

Yes, under certain circumstances. If the director agrees with the escrow agent's need for this arrangement and with the director's prior written consent a designated escrow officer or branch designated escrow officer may provide escrow services and may supervise employees for mor…

Regardless of whether or not you are compensated, it is misuse of your escrow license to:(1) Allow another person to use it to establish and carry on an escrow agent business over which you do not have full management and supervisory responsibilities; or(2) Fail to adequately sup…

No. Pursuant to WAC 208-680-174 and 208-680-410, the designated escrow agent is primarily responsible for the custody, safety, and accuracy of entries of all required escrow records, including the trust account books and records, and must have signatory authority on all trust acc…

Any main or branch office of an escrow agent must be identified by displaying the escrow agent's name in a manner visible to the public. The displayed name must be the name recorded on the license for that particular office location. Any physical office location where an escrow a…

Yes. You must prominently display all licenses in their associated locations, including branches.[Statutory Authority: RCW 43.320.040 and 18.44.410. WSR 13-24-022, § 208-680-225, filed 11/22/13, effective 1/1/14. Statutory Authority: RCW 43.320.040 and chapter 18.44 RCW (as amend…

You must notify the department of any change of the location or mailing address of your main or branch offices before engaging in business at your new locations or addresses. You must file an escrow agent amendment application form as prescribed by the director at least ten busin…

(1) When does the escrow agent license expire? All escrow agent licenses expire on December 31st of every year.(2) How do I renew my escrow agent license? Escrow agent licenses may be renewed by filing for renewal and paying the applicable fee to the department.(3) I did not rene…

(1) For how long is an escrow officer license valid? Escrow officer licenses are valid for one year from the date of issuance.(2) Can I renew my escrow officer license? Yes. Escrow officer licenses may be renewed by completing the online renewal application and paying the annual …

(1) If I close my main office, what effect does that have on any other offices? When the main office of an escrow agent closes, all branch offices must close.(2) What are my notification requirements to the department when I plan to close my business? Thirty days prior to the pla…

What restrictions affect the name I may use for my business? At the discretion of the director, an escrow agent may not receive a license or advertise in any manner using names or trade styles which: Are similar to current licensees; imply that the agent is a nonprofit organizati…

What significant events am I required to report to the department, and how quickly must I report them? Depending on the significant event, you will have different reporting periods.(1) Ten-day prenotification required. You must report to the director, in writing, changes to the f…

(1) What criminal background restrictions are there on the persons I may employ? You may not employ any person to provide escrow services or handle escrow transactions who has been convicted of or plead no contest within the last seven years to either:(a) A felony; or(b) A gross …

(1) What is a fidelity bond under the act? For purposes of the act, a fidelity bond is a primary commercial blanket bond or an equivalent bond or a combination of more than one bond acceptable to the department, regardless of the name used to identify the specific insurance produ…

(1) What errors and omissions insurance must I carry? You must carry an errors and omissions policy in the minimum aggregate amount of fifty thousand dollars or provide the department with a cash or securities alternative as described in subsection (2) of this section. Either a b…

(1) If you are closing the business, they will be returned to you the later of:(a) One year from the date of the expiration, cancellation, surrender, or revocation of your license, unless there are any pending actions commenced under WAC 208-680-340; or(b) The day all trust accou…

(1) Upon receipt of notification of a legal action for which notice is required to be given to the department under WAC 208-680-570, the department will notify the complaining party of the existence of any cash deposit or securities and the provisions of this chapter.(2) A claim …

If you assign, transfer, or set over a cash or securities deposit in lieu of an errors and omissions policy, you must keep the deposit in full force and effect at all times as a condition precedent to your authority to transact escrow business. Your deposit or securities must at …

In the event of cancellation or expiration of your errors and omissions policy or your fidelity or surety bonds, you must file satisfactory evidence of a new policy, bond, or reinstatement with the director before conducting any escrow business. Failure to file a new policy, bond…

(1) Who is responsible for funds deposited to and disbursed from an escrow trust account? The escrow agent must establish a trust account or accounts in a recognized Washington state depository. The escrow agent, through the designated escrow officer, is responsible for depositin…

(1) In order to determine compliance with chapter 18.44 RCW and chapter 208-680 WAC, each escrow agent must file with the director, within thirty days following the end of each fiscal quarter, the following documents in a form prescribed by the director:(a) A report concerning it…

You are required to keep the following trust account records:(1) Legible copies of all deposits made to the trust account including duplicate deposit slips validated by the bank or bearing the signature of the designated escrow officer or branch designated escrow officer, and inc…

What are the additional records requirements? (1) In addition to trust account records, you are required to keep additional records, including:(a) Transaction files containing all agreements, contracts, documents, leases, escrow instructions, settlement statements and corresponde…

(1) Generally, applicants and licensees must have a written program appropriate to the company's size and complexity, the activity conducted, and the sensitivity of information at issue. The program must ensure the information's security and confidentiality, protect against antic…

(1) Licensees must comply with GLBA, as amended, and Regulation P. Unless subject to an exception under GLBA, as amended, licensees must, at a minimum:(a) Provide customers with initial and annual notices regarding their privacy policies. These notices describe whether and how th…

If the licensee's data is compromised, the licensee may be subject to chapter 19.255 RCW and may have to provide notices to consumers whose information was acquired. Under certain circumstances notice of the breach may also be required by the attorney general's office.[Statutory …

Licensees must have a written plan that details the company's response and recovery to any event that results in damage to or destruction of books and records. The plan must be maintained as part of the licensee's books and records.[Statutory Authority: Chapter 43.320 RCW, RCW 18…

The escrow agent is responsible for providing escrow services between the principal parties. In addition to complying with the act and these rules, an escrow agent must at a minimum:(1) Escrow instructions.(a) Prepare or accept an instrument of escrow instructions from and agreed…

Yes. An escrow agent must perform all acts required of the escrow agent as expeditiously as possible and within any time period identified in the escrow instructions. Intentional or negligent delay in such performance is a violation of RCW 18.44.301, and provides grounds under RC…

(1) The escrow agent must disburse funds as set forth in the escrow instructions or collection agreement. Not doing so is a violation of RCW 18.44.430 (1)(e). Funds and other items or documents must be paid and/or disbursed immediately upon closing of the transaction or as specif…

You must, within twenty-four hours after service or discovery of a civil lawsuit, criminal complaint, or administrative action, notify the department. The notices must contain the following:(1) For any civil lawsuit, the subject matter of the lawsuit. You must provide the departm…

Every licensed escrow officer must:(1) Be knowledgeable of, keep current with, and comply with chapter 18.44 RCW and the rules;(2) Keep the department informed of his or her current home address;(3) Ensure accessibility of the escrow agent's offices and records to representatives…

It is a violation of the act for you, any controlling person, principal officer, designated escrow officer, independent contractor, employee or other person subject to this chapter to:(1) Directly or indirectly employ any scheme, device, or artifice to defraud or mislead borrower…

(1) For the purposes of determining compliance with chapter 18.44 RCW and chapter 208-680 WAC, the department may examine, wherever located, the records used in the business of every licensee and any person subject to the act.(2) The department may make necessary inquiry of the b…

(1) The department may conduct investigations at any time to determine whether any person has violated or is about to violate chapter 18.44 RCW, or any rule, regulation, or order under chapter 18.44 RCW, or to aid in the enforcement of chapter 18.44 RCW. For that purpose, the dep…

The department may conduct enforcement activities that include, but are not limited to:(1) Enter orders, including temporary orders to cease and desist, compelling any person to cease and desist from an unlawful practice, and to take such affirmative action as in the judgment of …

(1) The department may take any or all of the following actions:(a) Deny, suspend, or revoke an escrow agent or escrow officer license for any violation of RCW 18.44.430;(b) Remove or prohibit any principal officer, controlling person, director, employee, or licensed escrow offic…

(1) When may the department take control of my escrow agent property and business? The department may take control of a licensed escrow agent if, as a result of an examination, report, investigation, or complaint, it appears to the department that the licensed escrow agent:(a) Is…

Under the circumstances set forth in WAC 208-680-645, the department may give the licensee notice and opportunity to correct an unsafe or unsound condition. If the licensee fails to immediately comply with the terms of the notice or within such time as the department may allow, t…

You may challenge the department's decision under the Administrative Procedure Act, chapter 34.05 RCW.[Statutory Authority: RCW 43.320.040 and 18.44.410. WSR 13-24-022, § 208-680-648, filed 11/22/13, effective 1/1/14. Statutory Authority: RCW 43.320.040 and chapter 18.44 RCW (as …

(1) You will be charged $62.50 per hour for an examination or investigation or both pursuant to WAC 208-680-610 or 208-680-620.(2) You will also be charged the expenses of an examination or investigation or both. The expenses may include, but are not limited to, staff time, trave…

What happens if I fail to maintain my records after closing? If you do not maintain your records as required, you are responsible for the costs of collection, storage, conversion to electronic formats, and proper destruction.[Statutory Authority: RCW 43.320.040 and 18.44.410. WSR…

(1) What is the escrow committee, and what are its duties? The escrow committee is composed of the director or his or her designee and five board members appointed by the director. The committee provides advice on the escrow officer test, acts in an advisory capacity to the depar…

I would like to know when the next meeting of the escrow committee will be held. How can I get this information? If you would like to know about the date, time, place and agenda of the escrow committee meetings, you may make a request of the department, or may join the department…

What definitions are applicable to these rules? In addition to the definitions herein, the definitions in chapter 19.230 RCW apply throughout this chapter unless the context clearly requires otherwise."Act" means the Uniform Money Services Act, chapter 19.230 RCW."Advertise, adve…

(1) "Currency exchange." For purposes of RCW 19.230.010 (8)(b), "investment" means an investment that is not money of a government.(2) "Responsible individual." The responsible individual must:(a) Be a citizen of the United States or have legal immigration status to work in the U…

(1) See also RCW 19.230.020.(2) The issuance, sale, use, redemption, or exchange of closed-loop prepaid access.(3) The issuance or sale of open-loop prepaid access when the value is covered by federal deposit insurance immediately upon sale or issue. See the Federal Deposit Insur…