SB23-047 Summary

• Requires closing and settlement service providers to receive and confirm funds are deposited in a trust account at least one business day before the scheduled real estate transaction closing date.

• Defines "confirmed as deposited" as funds that have been received into the trust account and are available for immediate disbursement by the closing service provider.

• Prohibits disbursement of closing funds until they meet the one-business-day advance deposit requirement and are available for immediate withdrawal.

• Allows closing service providers to advance up to $500 on behalf of transaction parties for incidental fees such as tax certificates, recording costs, or minor closing adjustments.

• Takes effect September 1, 2024, and applies only to real estate transactions commencing on or after the effective date, subject to referendum petition provisions.