R592-18-4. Holding Construction Money and Money Held for Exchange

(1) This section applies to a transaction involving escrow funds for disbursement to a: (a) borrower under a construction loan; (b) general contractor; (c) subcontractor; or (d) supplier. (2) For a transaction described in Subsection (1), an individual title insurance producer or agency title insurance producer may not hold escrow funds for: (a) a disbursement occurring more than two business days after: (i) the closing of a real estate transaction in which an owner's or lender's policy of title insurance is issued; or (ii) the issuance of an endorsement on a lender's policy of title insurance; or (b) an exchange under Section 1031, Internal Revenue Code, occurring more than two business days after the closing of a real estate transaction in which a policy of title insurance is issued.