(1)
If I close one of my offices, what effect does that have on any other offices? When the main office of an escrow agent closes, all branch offices must close. When a branch office closes and the main office remains licensed, the responsibility for records maintenance and trust accounting for the branch's transactions reverts to the main office.
(2)
If I close an office, what are my notification requirements? When either the main office or a branch office of an escrow agent closes, either the designated escrow officer or a controlling person are jointly and severally obliged to notify the department within twenty-four hours of closure.
In addition to notifying the department, the designated escrow officer or a controlling person must:
(a) Within thirty days of office closure, provide the department with an itemized accounting of funds held in trust at the time of closure, including the names of the principal parties to the transaction, the escrow number, the amount of funds held and the purpose of the funds. If the trust account balance is zero, the escrow agent must provide a reconciliation of the trial balance supporting the zero balance;
(b) Within thirty days of office closure, provide the department with the name, residence address and telephone number of the person responsible for the records;
(c) Within thirty days of office closure, the street address where the records are located;
(d) Within thirty days of any change in the person responsible for the records or the place the records are maintained, notify the department of the change;
(e) Within thirty days of closure, provide the department with an itemized list of your retained records, specifying their location and quantity, including the number of files and the number of boxes they are stored in; and
(f) Within thirty days of closure, provide the department with a records retention plan that identifies the ways that you will store, retrieve, and destroy your required records in compliance with the act and this section. Your plan must identify how you will continue to pay any costs associated with your storage location.
(3)
How long do I need to maintain my records after closure? (a) Your records must be maintained for at least six years, and must be maintained in the state of Washington. They must be available upon demand of the department during business hours and must be maintained in a readily retrievable manner. Closing one or more of your offices does not discharge your obligation to retain your records.
(b) If there is a change in the person responsible for your records, or if the location of your records change, you must notify the department within thirty days.
(c) Your records must be stored, retrievable, and destroyed in accordance with the records retention plan you have submitted to the department.
(4)
What are my obligations regarding my trust account after I close a branch office? If the closed branch office has an associated trust account that contains client funds at the time of closure, the designated escrow officer or branch designated escrow officer responsible for that location must provide the department with monthly reports and reconciliations of the trust account to the trial balance, in compliance with WAC
208-680-410(9), until the trust account balance is zero. These reconciliations are due within thirty days of the end of the preceding month. If the designated or branch designated escrow officer is no longer with the escrow agent, another principal officer must file the monthly reports and reconciliations.
(5)
What are my obligations regarding my trust account after I close my main office? If your trust account contains client funds at the time of closure, the designated escrow officer must provide the department with monthly reports and reconciliations of the trust bank account to the trial balance, in compliance with WAC
208-680-410(9), until the trust bank account balance is zero. These reconciliations are due within thirty days of the end of the preceding month.
(6)
If I close my main office, what obligation do I have regarding winding up my business? You must wind up your business in a reasonably prompt manner. Until your account balances are zero, you must also maintain your fidelity and surety bonds under WAC
208-680-310 and your errors and omissions policy under WAC
208-680-320.
[Statutory Authority: RCW 43.320.040 and chapter 18.44 RCW (as amended by 2010 c 34). 10-20-124, § 208-680-245, filed 10/5/10, effective 11/5/10.]