Independent Escrow Agents

Title 7, Chapter 22 is titled the “Regulation of Independent Escrow Agents.” The statute regulates independent escrow agents; those who provide or offer to provide escrow services to the public. The Chapter was last amended in 2015, to require the use of the Nationwide Multistate Licensing System (NMLS) for registrations and renewals.

The definition of escrow in the statute states “Escrow” means an agreement, express or implied, that provides for one or more parties to deliver or entrust money, a certificate of deposit, a security, a negotiable instrument, a deed, or other property or asset to another person to be held, paid, or delivered in accordance with terms and conditions prescribed in the agreement.

For example, when real estate is sold between two private parties, they can contract with a third party (escrow agent) who will receive the payment from the buyer, apply the payment according to the terms of an agreement and remit an amount to the seller.

To access the Utah code relating to the “Regulation of Independent Escrow Agents” follow the link below to the Utah State Legislature’s website: Utah Code – Title 7 – Chapter 22 – Regulation of Independent Escrow Agents

This chapter does not apply to:

(a) a trust company authorized to engage in the trust business in Utah in accordance with Chapter 5, Trust Business;
(b) a person other than an escrow agent regulated under this chapter that is exempted from the definition of trust business in Subsection 7-5-1(1);
(c) a depository institution chartered by a state or the federal government that is engaged in business as a depository institution in Utah;
(d) the Utah Board of Higher Education, the Utah Higher Education Assistance Authority, or the State Treasurer; and
(e) a person licensed under Title 31A, Insurance Code.

Independent escrow agents must renew their registration annually through the NMLS, formerly known as the Nationwide Mortgage Licensing System and Registry.

Individuals who want to verify that a company is authorized to conduct business in Utah may verify the license status by visiting the NMLS Consumer Access. If the company you are looking for is not listed, it could mean that they have not applied for a license, that their application is in process, or that they are exempt from Chapter 22.

New Independent Escrow Registration Information

To become an independent escrow agent in Utah several things are required, including a bond and a net-worth of at least $50,000. A review of the statute regulating escrow agents, including all regulatory requirements, could be helpful (see link above). In addition, all escrow registrations and annual renewals take place on the NMLS. An application checklist detailing escrow registration requirements can be found on the NMLS. Click the link below to proceed to the NMLS.

Nationwide Multistate Licensing System

The NMLS Call Center provides user support for navigating the NMLS and performing essential functions within the System. You can call the Call Center at 855-665-7123, Monday through Friday 9 am to 9 pm Eastern Time, except for specified holidays. You may also visit the NMLS Resource Center for NMLS-related tools, tips, news, and updates.

For other questions, please contact the department at:

Department of Financial Institutions
PO Box 146800
Salt Lake City, UT 84114-6800
Or via email at: msb.dfi@utah.gov, or Phone: 801-538-8830.