LIS

Administrative Code

Creating a Report: Check the sections you'd like to appear in the report, then use the "Create Report" button at the bottom of the page to generate your report. Once the report is generated you'll then have the option to download it as a pdf, print or email the report.

Virginia Administrative Code
Title 18. Professional And Occupational Licensing
Agency 25. Auctioneers Board
Chapter 21. Regulations of the Auctioneers Board
10/7/2025

18VAC25-21-150. Escrow funds.

A. Proceeds of a personal property auction not disbursed to the owner on auction day must be deposited in an auction escrow account by the licensee no later than the next banking day following the date of auction or sale of the goods.

B. Notwithstanding the provisions of subsection A of this section, proceeds that are paid via credit card, debit card, check card, or any other electronic funds transfer (EFT) method must be deposited into an auction escrow account upon receipt from the originating source.

C. The auction escrow account must be used solely for the preservation and guarantee of auction proceeds until disbursed at settlement. Funds for any other purpose must not be commingled with the auction escrow account. Moneys due to the licensee must not be withdrawn from the auction escrow account until final settlement is made with the owner.

D. Funds to be deposited in the escrow account may include moneys that will ultimately belong to the licensee for incidental expenses per the terms of the contract. Such moneys must be separately identified in the escrow account records and must be paid to the licensee by a check drawn on the escrow account when the funds become due to the licensee. The fact that an escrow account contains money that may ultimately belong to the licensee does not constitute "commingling of funds," provided that the licensee can at all times accurately identify the total funds in that account that belong to the licensee.

E. Auctioneers and auction firms must use federally insured depositories in the Commonwealth of Virginia. All accounts, checks, and bank statements must be labeled "escrow" and the accounts must be designated as "escrow" accounts with the financial institution where such accounts are established.

F. Proceeds due from the sale of goods other than real property must be disbursed to the owner no later than 30 days after the date of each auction.

G. Funds from a real estate auction must be held in escrow until settlement in accordance with the agreement of sale.

H. If the owner's goods are not sold in a single auction, proceeds due must be disbursed to the owner within 30 days after each auction for goods other than real property, or in accordance with the agreement of sale for the sale of real property. Notice must be given to the owner of tentative date of auction, or date of return to the owner, of the remaining goods.

I. The balance in the escrow accounts must be sufficient at all times to account for all funds that are designated to be held by the licensee. A licensee must not disburse or cause to be disbursed moneys from an escrow account unless sufficient money is on deposit in that account to the credit of the individual client or property involved.

Statutory Authority

§§ 54.1-201 and 54.1-602 of the Code of Virginia.

Historical Notes

Derived from VR150-01-2:1 § 4.6, eff. August 1, 1995; amended, Virginia Register Volume 25, Issue 7, eff. February 1, 2009; Volume 25, Issue 24, eff. October 1, 2009; Volume 32, Issue 1, eff. November 1, 2015; Volume 42, Issue 1, eff. October 1, 2025.

Website addresses provided in the Virginia Administrative Code to documents incorporated by reference are for the reader's convenience only, may not necessarily be active or current, and should not be relied upon. To ensure the information incorporated by reference is accurate, the reader is encouraged to use the source document described in the regulation.

As a service to the public, the Virginia Administrative Code is provided online by the Virginia General Assembly. We are unable to answer legal questions or respond to requests for legal advice, including application of law to specific fact. To understand and protect your legal rights, you should consult an attorney.