Sec. 47-271. Escrow of deposits. Distribution of interest.
296 words·~1 min read·
/ct/title-47/chapter-828-common-interest-ownership-act/47-271·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Any deposit made in connection with the purchase or reservation of a unit from a person required to deliver a public offering statement pursuant to subsection
(c)of section 47-263 shall be placed in escrow and held either in this state or in the state where the unit is located in an account designated solely for that purpose by a licensed title insurance company, an attorney, a licensed real estate broker, an independent bonded escrow company or an institution whose accounts are insured by a governmental agency or instrumentality until
(1)delivered to the declarant at closing;
(2)delivered to the declarant because of the purchaser's default under a contract to purchase the unit; or
(3)refunded to the purchaser.
(b)If such deposit is made in connection with the purchase or reservation of a unit to be occupied by the purchaser and is placed in an interest-bearing escrow account other than an account established and maintained pursuant to section 51-81c , any interest which accrues thereon from the date of such deposit until its disposition pursuant to subdivision (1),
(2)or
(3)of subsection
(a)of this section shall be distributed as follows:
(1)If such deposit is delivered to the declarant at closing or refunded to the purchaser, such interest shall be divided equally between the purchaser and the declarant; and
(2)if such deposit is delivered to the declarant because of the purchaser's default under a contract to purchase the unit, such interest shall be paid to the declarant.
(c)Any person who procures the wrongful release of any escrow funds to the declarant or to a third party, with intent to defraud the purchaser, shall be guilty of embezzlement and on conviction shall be punished in the manner provided by law.