Independent escrow companies have some distinct advantages over those owned by real estate brokers, banks, and title companies. Those advantages work in your favor.
Independent Escrow Companies |
Real Estate Broker-Owned Escrow Departments |
Title Company Escrow Departments |
Bank Escrow Departments |
|
Assumed Impartial as a Third Party |
YES |
No (Escrow Officer is an employee of Broker who has influence over the transaction) |
No |
Yes (Unless financing is provided by the bank) |
Escrow License Required |
YES |
No |
No |
No |
Trust Funds Insured |
YES ($5,000,000 Escrow Agents Fidelity Corp. (E.A.F.C.) covers all Licensed Escrow Corporations) |
Yes (D.R.W. Recovery Funds: max $20,000 per individual) |
No |
No |
Bonding Required |
YES |
No |
No |
No |
Manager Escrow Experience Requirements |
5 years E.O. experience or 4 years E.O. + Escrow
Schooling |
No |
No |
No |
Dept. of Justice Investigation of all employees,
including photos and fingerprints |
YES |
No |
No |
No |
Escrow Officer Certification |
Available to any individual who is a member of
the California Escrow Association |
|||
Financial Liquidity Requirements |
YES |
No |
No |
No |
Regulatory Audits |
YES (Every 12-24 months by the D.O.C. without any prior notice) |
No (D.R.E. Auditors go out by appointment only) |
Internal audits at employer's discretion |
|
Annual CPA Audit Required |
YES |
No |
No |
No |
State Regulators |
Department of Corporations (DOC) |
Department of Real Estate (DRE) |
Department of Insurance
(DOI)
|