law

Three Banking Days Escrow Rule (Connecticut)

Under §20-324k, a Connecticut broker must keep a separate escrow or trust account at a bank doing business in Connecticut for others' money, such as earnest money, rents, and security deposits. Funds must be deposited within three banking days after the agreement is signed by all necessary parties and stay there until final legal disposition. Willful violations bring fines up to $1,000, up to six months in prison, or both, and commingling is a ground for discipline. Clerical staff may not sign on the account.