2791.1. Purchase Money Impounds.
(a) The amount of the money paid or advanced by a prospective buyer or lessee toward the purchase or lease of a
subdivision interest (Purchase Money) that must be deposited and retained in an escrow depository or trust account
pursuant to Section 11013.2(a) or 11013.4(a) of the Code shall ordinarily be the entire amount of the Purchase Money
less disbursements made to third parties for services enumerated in subdivision (b) of Regulation 2791.
(b) For purposes of compliance with Section 11013.2(a) of the Code:
(l) A proper release has not been obtained from a deed of trust encumbering subdivision lots or parcels unless an
instrument has been duly recorded unconditionally reconveying and releasing the lot or lots being sold or leased
from the lien or charge of such deed of trust.
(2) As an alternative to obtaining a proper release from the lien or charge of such deed of trust, it shall be deemed
acceptable by the commissioner, pursuant to the provisions of Section 11013.2(d) of the Code, if:
(A) the holder of the deed of trust has duly executed an agreement or demand (“release agreement”) wherein
the holder has agreed, notwithstanding any provision to the contrary in the deed of trust, to promptly perform
any act reasonably necessary to record an instrument unconditionally reconveying and releasing the subdivision
lots or parcels being sold from the lien or charge of the deed of trust upon payment to the holder of an amount
or amounts specified in the release agreement as the release price for the affected subdivision lots or parcels,
and the holder has further agreed that specific performance of the terms and provisions of the release agreement
shall be compelled in favor of the purchaser or lessee of the lot or lots;
(B) the release agreement has been deposited with the escrow holder for the transaction(s);
(C) the subdivider has notified each purchaser or lessee that the release agreement is available upon request
from the escrow holder; and
(D) each purchaser or lessee has been provided a policy of title insurance insuring the purchaser or lessee against
loss by reason of the deed of trust.