Services

Most real estate transactions in the State of California utilize the services of an escrow company yet, ironically, escrow remains one of the least understood elements of the real estate transaction.

Escrow is a process that many people go through only a few times in their lives. Because of this fact, very few are familiar with any particular escrow company and often times, buyers and sellers place their faith in their real estate broker or lender to recommend or select which company shall be used to handle their transaction. What many consumers don’t realize, however, is that the escrow company is YOUR choice and that when you use an escrow company, you are entrusting them to safeguard your funds being held in trust. In addition, it is the primary responsibility of the escrow holder to ensure that all of the necessary instructions in the real estate agreement are executed.

Although the majority of escrow companies are honest and reliable, the large sums of money handled by escrow companies can entice unscrupulous individuals to abscond with the funds they are charged with holding in trust. Unless the escrow company is regulated and bonded, there is often no safeguard assuring the return of the money to consumers.

Licensed escrow companies are the 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 $5,000,000.00. This fidelity bond guarantees that, in the event of theft of trust accounts, the consumers’ funds are protected.

The stringent requirements by the Department of Business Oversight assure that every licensed escrow company has met the highest standards of the industry. Consumer protection regulations unique to the licensed escrow companies include: