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Why choose us? An Independent Escrow Company.

Licensed Escrow Corporation vs. Other Escrow Providers

	Independent Escrow Companies	Real Estate Broker-Owned Escrow Departments	Title Company Escrow Departments	Bank Escrow Departments	Savings & Loan Escrow Departments
State Regulator	Department of Corporations	Will not license the escrow department
Bonding Required	YES	No	No	No	No
Manager Escrow Experience Requirements	5 years E.O. Experience or 4 years E.O. + Escrow School	No	No	No	No
Regulator Audits	YES (Every 12 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	No
Trust Funds Insured	YES $5,000,000 Escrow Agents Fidelity Corp. (E.A.F.C) covers all Licensed Escrow Corporations	YES D.R.E. Recovery Fund: max $20,000 per individual	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	No
Escrow License Required	YES	No	No	No	No
Assumed Impartial as a Third Party	YES	NO Escrow Officer is an employee of broker, who has influence over the transaction	Title Department has access/control of escrow money and procedures	YES Unless financing is provided by the bank.	YES Unless financing is provided by the S & L
Dept. of Justice Investigations of all employees, including photos and fingerprints	YES	No	No	No	No

Posted by Luisa Orellana, Escrow Officer, Camden Escrow on 04/02/2007 01:04 AM

Comments (5)

escrow, california, real estate, fsbo

This post has been included in California Information Los Angeles County, CA Information
Post is included in group: Escrow in SoCal

5 Comments on Why choose us? An Independent Escrow Company.

APR

2007

In southern California I know there are independent escrow companies, but to the best of my knowledge, we do not have them here in northern California. It's all handled by title companies.

Weird how regional it all is.

Mary

Hi Luisa,

Thanks for sharing the info.

I'm certainly aware of the difference between those licensed by the doc vs. the DRE. I just wished more agents knew the differences. They may think twice about placing a seller's proceeds in the hands of a company who is not held to the highest standards.

And I think they are throughout the state of CA.

Your very welcome!

Yes. Northern California and Southern California work very differently.

Most agents and consumers out there aren't aware on how regulated an independent escrow company is. We are a neutral third party.

I believe that when you have an escrow with a company that is owned by a Real Estate Agent, Broker or Bank and they represent you the consumer as their Agent, its now a conflict of interest. As you now have a Broker Controlled Escrow. I think that consumers need to get more involved with their real estate transaction and do their research before allowing their real estate representative to choose an escrow holder for them. It is the right of the principals to use an escrow holder who is competent and who is experienced in handling the type of escrow at hand. The Agent is there to negotiate for them. And when you have a fairly new real estate agent....well, you know what the consequences of that will be if that real estate agent hasn't done their reserach also. So my advice to everyone out there would be....do your research and ASK lot's of questions!

OCT

Luisa,

An escow officer at IMAGE ESCROW, which used to be in Fountain Valley, CA gave me this sheet many years ago. Unfortunately, I lost it, and have been looking for it ever since. I have had this discussion with other brokers for years, and surprisingly, very few know the difference.

Thank you for poting this valuable document. I will be giving a copy to my clients from now on. This is very important information for every agent and broker, and shows why broker owned escrows, especially, are a dangerous gamble. Thanks again for posting this document

NOV

Hi Steve:

It sure is a dangerous gamble. I can't tell you how many In-House Escrow Companies I know that have closed their doors along with their Real Estate Brokerage Firms because of fraud being committed on a daily basis. The importance is to look for an Escrow Company that is regulated by the Department of Corporations. Even if its affiliated with a Real Estate Office or Mortgage Firm, it is still being regulated by the Department of Corporations and the chances of it being controlled or commitment of fraud are VERY slim. Glad to be of Help! :0)

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