Independent Escrow
Companies Serve Clients Better
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 process.
Consequently, buyers and sellers of real estate often place
their faith in the real estate broker or lender to
recommend an escrow company. What many consumers fail to
realize, however, is that often times the recommended
escrow company is owned or affiliated with the broker or
lender.
As a consequence, Buyers and Sellers are entrusting the
safeguarding of their funds to an escrow company which is
an affiliate of the broker or lender.
Inasmuch as it is the primary responsibility of the escrow
holder to ensure that all of the necessary instructions in
the real estate agreement are executed and that your
interests are represented fairly, it is in your best
interests that you have an unattached and impartial escrow
company manage this closing process.
It is crucial, then, that consumers make informed and
knowledgeable decisions when choosing an escrow company.
Ask your broker and lender if the escrow company they want
you to use is truly independent, or is in fact owned or
financially affiliated with their company. The law requires
them to tell you the answer to this question -- honestly.
Bottom line: a licensed escrow company is the best possible
neutral third party to complete your real estate
transaction.
Whether searching for an escrow holder yourself, or looking
to recommend one to a client, a licensed escrow company
gives you peace of mind. Independent Escrow companies are
licensed by the California Department of Corporations.
Many real estate/lender-owned and affiliated escrow
companies are not licensed by the California Department of
Corporations.