AN ACT PROHIBITING CERTAIN CLAIMS AGAINST ESCROW AGENTS.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
SECTION 1. Section 17A of chapter 184 of the General Laws, as appearing in the 1998 Official Edition, is hereby amended by adding the following paragraph:-
If an individual, firm or corporation holds funds entrusted to him pursuant to a written agreement for the sale of real property and the written agreement expressly authorizes the individual, firm or corporation, as escrow agent, to continue to hold the funds in the event of a dispute between the buyer and seller concerning entitlement to the funds, no claim shall be maintained against the individual, firm or corporation, as escrow agent, whether as trustee, stakeholder or otherwise, if the escrow agent has complied with the mutual written instructions of the buyer and seller, if any, and any order or judgment of a court or final decision of an arbitrator with regard to accounting for or disbursing the funds. In an action commenced with regard to entitlement to such escrowed funds, a party to the action may file a motion seeking an order to have the funds paid into court by the escrow agent. Written notice of the motion shall be given by the moving party to all other parties and to the escrow agent. The escrow agent shall pay the funds into court within ten days of receipt of such order or within such other time as provided by the court.
SECTION 2. This act shall apply to agreements for the sale of real property entered into or executed on or after the effective date of this act.