File No. 34449
This rule was published in the March 1, 2011, issue (Vol. 2011, No. 5) of the Utah State Bulletin.
Insurance, Title and Escrow Commission
Rule R592-4
Standards for Minimum Charges for Escrow Services
Notice of Proposed Rule
(Repeal)
DAR File No.: 34449
Filed: 02/15/2011 05:37:10 PM
RULE ANALYSIS
Purpose of the rule or reason for the change:
This rule, along with Rule R592-3, Filing a Schedule of Minimum Charges for Escrow Services, is being repealed and the two are combined as one new rule in Rule R592-15, Submission of a Schedule of Minimum Charges for Escrow Services. (DAR NOTE: The proposed repeal of Rule R592-3 is under DAR No. 34448 and the proposed new Rule R592-15 is under DAR No. 34447 in this issue, March 1, 2011, of the Bulletin.)
Summary of the rule or change:
This rule is being repealed in its entirety. It will be combined with Rule R592-3 to create the new Rule R592-15.
State statutory or constitutional authorization for this rule:
- Section 31A-2-404
Anticipated cost or savings to:
the state budget:
This rule will have no fiscal impact on the department or the state budget since the provisions of this rule are being included in Rule R592-15.
local governments:
This rule will have no fiscal impact on local governments. Its requirements deal solely with the relationship between the department and its licensees.
small businesses:
The repeal of this rule will have no fiscal impact on small businesses since the rule is being made a part of the new Rule R592-15. New provisions are already being followed by the department and members of the title industry.
persons other than small businesses, businesses, or local governmental entities:
The repeal of this rule will have no fiscal impact on businesses, the public, or local governments since the rule is being made a part of the new Rule R592-15. New provisions of the rule are already being followed by the department and members of the title industry.
Compliance costs for affected persons:
The repeal of this rule will have no fiscal impact on businesses, the public, or local governments since the rule is being made a part of the new Rule R592-15. New provisions of the rule are already being followed by the department and members of the title industry.
Comments by the department head on the fiscal impact the rule may have on businesses:
The repeal of this rule will have no fiscal impact on businesses since it is being made a part of Rule R592-15. The change from the repeal of this rule and the implementation of Rule R592-15 will be seamless.
Neal T. Gooch, Commissioner
The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:
InsuranceTitle and Escrow Commission
450 N MAIN ST
SALT LAKE CITY, UT 84114-1201
Direct questions regarding this rule to:
- Jilene Whitby at the above address, by phone at 801-538-3803, by FAX at 801-538-3829, or by Internet E-mail at [email protected]
Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:
03/31/2011
This rule may become effective on:
04/07/2011
Authorized by:
Jilene Whitby, Information Specialist
RULE TEXT
R592. Insurance, Title and Escrow Commission.
[
R592-4. Standards for Minimum Charges for Escrow
Services.
R592-4-1. Authority.
This rule is promulgated by the Title and Escrow
Commission pursuant to Section 31A-2-404.
R592-4-2. Purpose and Scope.
(1) The purpose of this rule is to set forth standards
for minimum charges for escrow services on the Schedule of
Minimum Charges for Escrow Services.
(2) This rule applies to all title insurers, agencies and
producers providing escrow services in Utah.
R592-4-3. Definitions.
In addition to the definitions of Sections 31A-1-301,
31A-2-402 and 31A-19a-102, the following definitions shall apply
for the purposes of this rule:
(1) "Additional escrow work" means escrow
settlement services that are rendered in excess of the escrow
settlement services not specifically shown in the minimum escrow
charges listed in the Schedule of Minimum Charges for Escrow
Services.
(2) "Charge" means a dollar amount charged for
a service rendered by a title insurer, title agency, or title
producer.
(3) "Document Preparation" means the
preparation or compilation of documents in connection with escrow
services.
(4) "Escrow charge" means a dollar amount
charged for an escrow service shown in the Schedule of Minimum
Charges for Escrow Services.
(5) "Schedule of Minimum Charges for Escrow Services
" means the standardized form submitted with a title escrow
charge filing.
(6) "Escrow Services" means those services to
settle real estate transactions.
(7) "Long-term Escrow" means For Benefit Of
(FBO) accounts that are for the purpose of payment collection and
administration of seller-financed transactions.
(8) "Mini Escrow" means an escrow settlement
service done by a title agency to clear a title, obtain payoffs
and record necessary closing documents for a lender that performs
his or her own closing service.
(9) "Other Settlement Services" means
additional services not specifically listed in the Schedule of
Minimum Charges for Escrow Services.
R592-4-4. Schedule of Minimum Charges for Escrow
Services.
(1) The Schedule of Minimum Charges for Escrow Services
must be used when submitting:
(a) an initial Schedule of Minimum Charges for Escrow
Services filing; or
(b) changes to a previously submitted Schedule of Minimum
Charges for Escrow Services filing.
(2) All blank fields of the Schedule of Minimum Charges
for Escrow Services must be completed.
(3) If a filer does not perform a service, the blank
field must show "N/A" or "Not
Applicable."
R592-4-5. Charges.
(1) Escrow service charges.
(a) Escrow charge.
(i) In accordance with 31A-19a-209(3), no escrow charge
may be filed or used that would cause the agency or producer to
operate at less than the cost of doing the business of
escrow.
(ii) Only minimum escrow charges shown in the Schedule of
Minimum Charges for Escrow Services must be filed.
(b) Other settlement services charge.
(i) An Other Settlement Service charge will be used for
services not specifically shown in the Schedule of Minimum
Charges for Escrow Services.
(ii) An Other Settlement Service charge must be filed as
a per hour charge.
(c) Document preparation charge. Only document charges
shown in the Schedule of Minimum Charges for Escrow Services must
be filed.
(2) Other services which are not specifically listed on
the Schedule of Minimum Charges for Escrow Services may be
rendered provided a justifiable charge is made.
R592-4-6. Penalties.
A person found, after a hearing or other regulatory
process, to be in violation of this rule shall be subject to
penalties as provided under Section 31A-2-308.
R592-4-7. Enforcement Date.
The commissioner will begin enforcing this rule 90 days
from the rule's effective date.
R592-4-8. Severability.
If any provision of this rule or the application of it to
any person or circumstance is for any reason held to be invalid,
the remaining provisions to other persons or circumstances shall
not be affected.
KEY: title escrow charges
Date of Enactment or Last Substantive Amendment: July 19,
2006
Authorizing, and Implemented or Interpreted Law:
31A-2-204 ]
Additional Information
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For questions regarding the content or application of this rule, please contact Jilene Whitby at the above address, by phone at 801-538-3803, by FAX at 801-538-3829, or by Internet E-mail at [email protected].