Most real estate transactions in the State of California utilize the services of an escrow company. Ironically, escrow remains one of the least understood elements of the real estate process.
What many consumers don't realize, however, is that they are entrustings this escrow company to safeguard their funds being held in trust.
It is crucial, then, that the broker, lender or consumer make a knowledgeable and informed decision in choosing an escrow company.
Large sums of money handled by escrow companies can entice unscrupulous individuals to abscond with the funds they are holding in trust.
Independent Licensed escrow companies are consumers' best bet for safeguarding their funds.
All licensed escrow companies are required to be members of the Escrow Agents' Fidelity Corporation which provides fidelity coverage for member trust accounts in the amount of $5+ million.
A Certification Program for all officers in the company's employ, including fingerprinting & background checks by the Department of Justice.
Financial stability requirement, including multiple CPA audit's a year; and, frequent surprise examinations conducted by the DBO.
Neutral Third Party
Whether searching for an escrow holder yourself, or looking to recomment one to a client, a licensed escrow company gives you peace of mind.
Governed by the "Escrow Law", contained in Div. 6 of the CA Financial Code, and regulatred under Title 10 of the CA Code of Regulations
Requirement for Maintenance of tangible net worth and excess of liquid assets.
Set forth in Section 17210 of the California Financial Code.
This post is a guest post by Justen Brown, San Diego's Closing Company, of Alliance Escrow. Learn more about Justen and contact him here 619-249-3140.