The Escrow Process | Advantages of Independent Escrow
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ADVANTAGES OF INDEPENDENT ESCROW |
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| Independent Escrow Companies | Real Estate Broker- Owner Escrow Departments |
Title Company Escrow Departments | |
| State of California Regulating Body (If Complaints) | Dept. of Corporations (D.O.C.) |
Dept. of Real Estate | Dept. of Insurance |
| Bonding Required | Yes | No | No |
| Manager Escrow Experience Requirements | Yes (4-5 Years) |
No | No |
| Regular Operational Procedural Audits | Yes (Every 12-48 Months by the D.O.C. without any prior notice.) |
No (D.R.E. Auditors go out only if a problem is encountered) |
No |
| Independent Audits Required | Yes (Annually, too!) |
No | No |
| Deposit Funds Protection | Yes Escrow Agents Fidelity Corp. (E.A.F.C.) Covers All Independent Licenses |
Yes (D.R.E. Recovery Fund: Max $20,000 per individual) |
No |
| Escrow Officer Certification | Yes (For escrow officer employees of members of California Escrow Assoc.) |
No | No |
| Net Worth Requirements | Yes | No | No |
| Liquidity Requirements | Yes | No | No |
| Escrow License Required | Yes | No | No |
| True Impartiality as a Third Party | Yes | Doubtful (Broker has financial interest in transaction.) |
Doubtful Title company has other financial interest in transaction. |
| Background Investigations of ALL Employees, including photos and fingerprints | Yes | No | No |