Q: Can I add my business partner as a second signatory on the brokerage’s escrow account?

A: If they hold a broker’s license, then yes. The Board of Registration of Real Estate Brokers and Salesmen’s Professional Standards of Practice, 254 CMR 3.10 regulates the broker’s responsibilities for maintaining an escrow account but is silent as to whether the broker may delegate check signing authority.

The Board of Registration has interpreted the regulation as allowing only a broker to keep and maintain escrow accounts meaning that neither a salesperson nor an unlicensed individual may have access to check writing ability over those funds. However, the Board has recognized that there may be instances that check signing authority needs to be delegated to another individual and therefore interprets its regulation to allow for affiliated brokers to be signatories on escrow accounts.

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