California’s Escrow Law
Licensed vs. exempt escrow in California
In California, a company that holds escrows needs a license under the Escrow Law unless it is exempt. Banks, credit unions, insurance and title companies, attorneys handling an escrow for their own client, and real estate brokers handling escrow in a deal where they are an agent or a party are exempt. Exempt holders are regulated under the laws for their own industries.
How the two compare under California law
| What to compare | Licensed escrow company, like Cal West | Exempt escrow holder |
|---|---|---|
| License | An escrow agent license under the Escrow Law. This escrow company holds California Department of Financial Protection and Innovation Escrow License No. 96DBO-108128. | No Escrow Law license. The bank, credit union, insurer, title company, attorney or broker follows the rules for its own industry. |
| Who it serves | Any buyer, seller and agent, as a neutral holder that acts on the written instructions of the parties. | Depends on the holder. A broker may hold escrow only in a deal where it is an agent or a party, and an attorney only for a client. |
| Experienced staff on site | At least one person with five or more years of responsible escrow experience on duty at the main office whenever it is open (four years at a branch). | Not required by the Escrow Law. |
| Background checks | Each person a licensed escrow company hires submits fingerprints for a state and federal criminal history check, and certain fraud, theft and similar convictions bar people from the business. | Set by the rules for that type of business. |
| Financial requirements | Minimum net worth and liquid assets, and an audit by an independent CPA every year. | Set by the rules for that type of business. |
| Escrow Agents’ Fidelity Corporation | Member of Escrow Agents’ Fidelity Corporation (EAFC).* | Not EAFC members. Membership is limited to licensed escrow companies. |
*General summary of California law (Financial Code sections 17006, 17200.8, 17210, 17312, 17406 and 17414.1), not a description of any other company. Exempt holders are regulated under the laws for their own industries.
What this means when you choose escrow
A licensed escrow company is a neutral holder for any buyer, seller and agent. California law requires it to keep experienced escrow staff on duty, run fingerprint background checks on each person it hires, meet net worth requirements, have an independent CPA audit every year, and belong to Escrow Agents’ Fidelity Corporation. Ask any escrow holder how it is licensed or exempt, and who it works for in your deal.
Questions about an escrow? Call Iris Chae at (323) 300-6122 or email iris@calwestescrow.com.
- License
- This escrow company holds California Department of Financial Protection and Innovation Escrow License No. 96DBO-108128.
- EAFC
- MEMBER OF ESCROW AGENTS’ FIDELITY CORPORATION (EAFC). EAFC PROVIDES FIDELITY COVERAGE TO ITS MEMBERS. EAFC IS NOT A GOVERNMENT AGENCY, AND THERE IS NO GUARANTEE OF A PAYMENT OF ANY CLAIM BY THE STATE OF CALIFORNIA.
- Office
- 888 S. Figueroa St., Suite 2030, Los Angeles, CA 90017
How escrow works
This page is general information about California law, not legal advice.
Got acceptance? Send Iris the signed contract.
Email the fully executed purchase agreement, with every counter and addendum, to iris@calwestescrow.com, or use this form. Iris opens the file, issues the escrow number and orders the preliminary title report.
- Iris, office line(323) 300-6122
- Text Iris(213) 500-9875
- Fax(323) 300-5996
- HoursMonday to Friday, 9am to 5pm