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

Will not license the escrow department

Will not license the escrow department

Will not license the escrow department

Bonding Required

YES

NO

NO

NO

NO

Manager Escrow Experience Requirement

5 years Escrow Officer experience or 4 years Escrow Officer experience plus Escrow School

NO

NO

NO

NO

Regulator Audits

YES

(Every 4 years or sooner by the Dept. of Corporations without any prior notice)

NO

Dept. of Real Estate auditors go out by appointment only.

Internal audits at employer’s discretion.

Internal audits at employer’s discretion.

Internal audits at employer’s discretion.

Annual CPA Audit Required

YES

NO

NO

NO

NO

Trust Funds Insured

YES

$5,000,000.00

Escrow Agents Fidelity Corp. Covers all licensed Escrow Corporations

YES

Dept. of Real Estate Recovery Fund: Maximum of $20,000 per individual

NO

NO

NO

Escrow Officer Certification

Available to any individual who is a member of California Escrow Association

Available to any individual who is a member of California Escrow Association

Available to any individual who is a member of California Escrow Association

Available to any individual who is a member of California Escrow Association

Available to any individual who is a member of 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

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 Savings & Loan

Department of Justice Investigations of all employees, including photos and fingerprinting

YES

NO

NO

NO

NO