Escrow Disbursements: What Real Estate Firms and Brokers Must Know: Legal Hotline: Fall 2025

Confused about whether escrow can pay your broker, team leader, or assistant directly? In this episode of the Legal Hotline, we break down when escrow disbursements are lawful, what written instructions are required, and why the firm always remains responsible for the full tax liability.

You’ll learn:
• When and how escrow can split commission payments
• Why blanket or standing instructions are not permitted
• How written, transaction-specific directions from the designated broker protect your firm
• The tax implications of escrow-directed disbursements

Members: Ask a question or explore more legal resources:
Visit: warealtor.org, log in, and follow the links to the Legal Hotline

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Starring Annie Fitzsimmons (WR's Legal Hotline Lawyer)

Disclaimer: Legal Hotline services, including videos, articles, and access to the Hotline, are a Washington REALTOR® member-only educational benefit and do not constitute legal counsel. If you’re a primary member in good standing, visit warealtor.org with your M1 ID and password to access more features.

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