08-Feb-2008

Pursuant to TREC Rule 1260-2-.09(5), a broker may disburse funds from an escrow or trustee account upon: (1) a reasonable interpretation of the contract pursuant to which the broker is holding said funds; (2) securing a written agreement allowing disbursement of the funds that has been signed by all parties interested in said funds (please see TAR Form F30 - Earnest Money Disbursement and Release); (3) the closing of the transaction; (4) the rejection of an offer to purchase, sell, rent, lease, exchange, and/or option real estate; (5) the withdrawal of an offer not yet accepted to purchase, sell, rent, lease, exchange, or option real estate; (6) the filing of an interpleader action; or (7) the order of a court of competent jurisdiction.

In the event an interpleader action is to be filed, it will be necessary for the managing broker to retain an attorney to file the action for the brokerage firm and represent the firm in court. The reason is that corporate entities are not considered "persons" under the law and, therefore, cannot represent themselves in court.