R592. Insurance, Title and Escrow Commission.R592-18. Construction Disbursement Transactions.
R592-18-1. Authority.
This rule is promulgated by the Title and Escrow Commission pursuant to Subsection 31A-2-404(2).
R592-18-2. Purpose and Scope.
(1) The purpose of this rule is to clarify and implement the statutory prohibition contained in Subsection 31A-23a-406(2)(h).
(2) This rule applies to:
(a) an individual title insurance producer;
(b) an agency title insurance producer; and
(c) any officer or employee of an agency title insurance producer.
R592-18-3. Definitions.
Terms used in this rule are defined in Sections 31A-1-301 and 31A-2-402.
R592-18-4. Holding Construction Money and Money Held for Exchange.
(1) This section applies to a transaction involving escrow funds for disbursement to a:
(a) borrower under a construction loan;
(b) general contractor;
(c) subcontractor; or
(d) supplier.
(2) For a transaction described in Subsection (1), an individual title insurance producer or agency title insurance producer may not hold escrow funds for:
(a) a disbursement occurring more than two business days after:
(i) the closing of a real estate transaction in which an owner's or lender's policy of title insurance is issued; or
(ii) the issuance of an endorsement on a lender's policy of title insurance; or
(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.
R592-18-5. Effective Date.
The commissioner will begin enforcing this rule on the date it becomes effective.
R592-18-6. Severability.
If any provision of this rule, Rule R592-18, or its application to any person or situation is held invalid, such invalidity does not affect any other provision or application of this rule that can be given effect without the invalid provision or application. The remainder of this rule shall be given effect without the invalid provision or application.
KEY: insurance, title, escrow
Date of Last Change: April 21, 2026
Authorizing, and Implemented or Interpreted Law: 31A-2-404(2)
