What is the fee for the escrow service? 

Many believe the escrow fees are set by law. Escrow fees are NOT GENERALLY regulated by law or by SOME state statues. But Check your States Statue for regulation on Escrow Fees. Escrow Fees are set by each escrow company or escrow officer.

Although many individuals complain about the escrow and closing costs involved in the property transaction, it is a required step that is necessary to protect both sides during what is an expensive business arrangement. Escrow and closing costs can make up a component of 3% to 6% of the total purchasing costs. However, real estate laws now make this stage transparent, as both the homebuyer and home seller are able to see in writing the total number of escrow and closing costs has been charged to them. 

The escrow fee is normally based on the size and complexity of the transaction. Also on the liability assumed and the cost of producing the service. Since there are so many types of escrows and every transaction is different, there are no set fees. It may be necessary to charge additional fees for extra or unusual services performed during the course of the escrow.

Escrow fees may vary depending on your local area. Normally, the fees are higher in larger areas than in smaller ones. Now in days, the fees for an escrow in Southern California is $550.00 minimum for a refinance transaction and $1.95 per thousand, plus a base fee on a sale transaction and other fees may apply, depending on the complexity of the transaction. Escrow fees vary from state to state and even from county to county.

Upon request, your escrow officer will be able to provide you with an estimate of costs as well as those costs charged by others, provided such information is available. Usually the escrow fee is divided in accordance with the agreement of the parties.