State Codes and Statutes
Statutes > North-carolina > Chapter_143 > GS_143-143_51§ 143‑143.51. Use ofescrow or trust funds; penalty for violations.
(a) Buyer funds in thedealer's escrow or trust account shall be held for the benefit of the buyer andmay only be used for purposes authorized under the contractual obligations ofthe dealer to the buyer. No buyer funds in the dealer's escrow or trust accountmay be used by the dealer until after all the terms set forth in G.S. 143‑143.21Aare finalized and after the three‑day right of cancellation period as setforth in G.S. 143‑143.21A has expired. The dealer may use buyer funds tocomplete the steps necessary for site preparation of property, when approved inwriting in advance by the buyer. Buyer funds in the dealer's escrow or trustaccount shall be promptly returned to the buyers when the buyer is entitled toreturn of the funds in accordance with G.S. 143‑143.21A.
(b) Notwithstanding anyother provision of law and in addition to any other sanction the Board mayimpose under this Article, if the Board finds that a dealer has used a buyer'sfunds for a purpose that is not authorized under subsection (a) of this sectionor if the Board finds that a dealer has failed to place deposits in thedealer's escrow or trust account, the Board may fine the dealer or orderrestitution to the buyer in an amount up to the amount that the dealermisappropriated or failed to place in the account. (2005‑451, s. 6.)
