What must a broker obtain before placing funds in an interest-bearing escrow account?

A broker must obtain written permission from all parties involved before placing funds in an interest-bearing escrow account. This requirement ensures that all parties are fully informed and in agreement about the terms and conditions related to the handling of the funds. It helps to establish transparency and trust among all stakeholders in a transaction, as they are made aware of how their funds are being managed and the potential for earning interest.

Having written permission also serves as a legal protection for the broker, as it provides clear documentation that all parties consented to the arrangement. This step is critical in maintaining compliance with regulations and industry norms surrounding the management of escrow accounts, especially since handling other people's money carries significant responsibility.

In contrast, verbal agreements, confirmations from third parties, or regulatory approvals do not provide the same level of accountability and protection for the broker and parties involved as written permission does.