The California Escrow License Surety Bond is required by the California Department of Business Oversight, Division of Corporations.
California defines “escrow” as “any transaction wherein one person, for the purpose of effecting the sale, transfer, encumbering, or leasing of real property to another person, delivers any written instrument, money, evidence of title to real or personal property, or other thing of value to a third person to be held by such third person until the happening of a specified event or the performance of a prescribed condition, when it is then to be delivered by such third person to a grantee, grantor, promisee, promisor, obligee, obligor, bailee, bailor, or any agent or employee of any of the latter.”
Escrow agents are required to be licensed, including internet based escrow companies. The Escrow Law protects members of the public who entrust their money or other assets to independent escrow agents in California. The Escrow Law requires a manager to have a minimum of five years of responsible escrow experience to be stationed at the licensed location during open office hours.
The California Escrow Agents Association represents the industry professionals.
What are the requirements in order to be a licensed Escrow Agent in the state of California?
If you want to be an escrow agent in California you need to get licensed. The following are the requirements that must be met:
- You must be a member of the Escrow Agents’ Fidelity Corporation
- You must file a fidelity bond if the transactions are those not listed under Section 17312
- You must meet the minimum financial requirements by submitting audited financial statements that show that the company has tangible assets exceeding $50,000 and liquid assets of $25,000
- There must be a thorough background check for all officers, directors, stockholders, etc.
- The manager must have at least five years of escrow experience and sign an affidavit that he/she is familiar with the rules and regulations
- You must also pay a fee of $625 for the first office and $425 for any additional office, along with a $100 fee for investigation for each office location.
- The applicant must also submit a California Escrow License Surety Bond of at least $25,000 issued by a company licensed to do business in the state.
- Note: Surety1 is licensed in all 50 states and can issue this bond for less than 1% with good credit!
You can find more information about Escrow Law and Licenses on the Department of Business Oversight’s website.
What bond amount should my California Escrow License Surety Bond be?
Each escrow agent is required to maintain a surety bond at all times. The amount of the surety bond may be $25,000, $35,000 or $50,000, depending on the average trust liability. The surety bond amount is increased by $5,000 for each additional licensed location.
Where can I get a California Escrow License Surety Bond?
To obtain a California Escrow License Surety Bond, all you need to do is take a few minutes to fill out our free online application! Within one business day one of our licensed agents will contact you with a no-obligation quote for the price to obtain your bond (the “premium”). Once any necessary paperwork is signed and the premium payment is processed, your surety bond will be shipped to you via USPS Priority Mail (overnight shipping options also available).
The surety bonding experts at Surety1 are here to help you get bonded quickly and reliably. We work with over a dozen “A” rated surety markets to ensure we find you the lowest rate for your bond. We are also licensed in all 50 states and maintain an A+ rating by the Better Business Bureau.