1. (1) This section applies to a transaction involving escrow funds for disbursement to a:

   1. (a) borrower under a construction loan;
   2. (b) general contractor;
   3. (c) subcontractor; or
   4. (d) supplier.

2. (2) For a transaction described in Subsection (1), an individual title insurance producer or agency title insurance producer may not hold escrow funds for:

   1. (a) a disbursement occurring more than two business days after:

      1. (i) the closing of a real estate transaction in which an owner's or lender's policy of title insurance is issued; or
      2. (ii) the issuance of an endorsement on a lender's policy of title insurance; or
   2. (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.

KEY: insurance, title, escrow

Date of Last Change: April 21, 2026

Authorizing, and Implemented or Interpreted Law: 31A-2-404(2)