Independent Escrow Companies are held to a higher standard than other escrow operators.
The more experience, the better the escrow!
Independent Escrow Companies | Real Estate Broker Owned Escrow Departments |
Title Company Escrow Departments | Bank Escrow Departments | Savings & Loan Escrow Departments | |
Assumed Impartial as a Third Party |
Yes | No (Escrow officer is an employee of Broker, who has influence over the transaction) |
No (Title Dept. has access/control of escrow money and procedures) |
Yes (Unless financing is provided by the bank) |
Yes (Unless financing is provided by the S&L) |
Escrow License Required |
Yes | No | No | No | No |
Trust Funds Insured |
Yes | Yes (D.R.E. Recovery Funds: max $20,000 per individual) |
No | No | No |
Bonding Required | Yes | No | No | No | No |
Manager Escrow Experience Requirements |
5 yrs E.O. Experience or 4 yrs E.O. + Escrow Schooling | No | No | No | No |
Dept. of Justice Investigation of all employees, including photos and fingerprints |
Yes | No | No | No | No |
Financial Liability Requirements |
Yes | No | No | No | No |
Regulatory Audits | Yes (Every 12-24 Months by the D.O.C. without any prior notice) |
No (DRE go out by appointment only) |
Internal audits at employer’s discretion | ||
Annual CPA Audit Required |
Yes | No | No | No | No |
State Regulators | Department of Corporations (DOC) | Department of Real Estate (DRE) | Department of Insurance (DOI) | Federal Deposit Insurance Corporation (FDIC) |