Supervising Broker Duties and Escrow
Missouri places supervisory and escrow accountability on the designated or supervising broker of a firm. This chapter covers the broker's duty to supervise licensees and to handle client money under Chapter 339 and Commission rules.
Duty to Supervise
The designated or supervising broker must actively supervise the licensed activity of affiliated salespersons and broker-salespersons, including advertising, contract handling, and communications with the public. The broker is accountable to the Commission for the firm's compliance. Failure to supervise is itself a basis for discipline even if the broker did not personally commit the underlying violation.
Escrow and Trust Accounts
A Missouri broker who receives earnest money or other funds belonging to others must deposit them into a separate escrow or trust account and may not commingle them with the broker's own funds. The broker must account for and disburse the money according to the contract or a proper release and must keep records available for Commission inspection. Mishandling escrow money is one of the most serious violations in Missouri practice.
Handling Disputed Deposits
When the parties dispute who is entitled to escrowed earnest money, the broker must not simply pay it to one side at the broker's discretion. The broker holds the funds until the parties agree in writing, a court orders disbursement, or another lawful method resolves the dispute. Proper handling of disputed deposits protects the broker from claims of conversion.