Opinion No.

The Honorable Jim Von Gremp State Representative Post Office Box 866 Bentonville, AR 72712-0866

Dear Representative Von Gremp:

This is in response to your request for an opinion concerning the propriety of various real estate transactions. Your first question is as follows:

1. When a title insurance agent receives funds from the buyer or seller for use in the closing of a real estate transaction:

a. Must the funds be placed into an escrow account or can they be placed in the general account of the title insurance agent?

b. Can the title insurance agent collect interest on those funds and, if so,…