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Know the difference between an independent escrow company, a title company escrow and a Broker owned escrow.
Independent Escrow Companies - Licensed by Department of Corporations. Subject to annual or bi-annual audits from the D.O.C.
Title Company - Escrow Divisions - Licensed by the Department of Insurance. They do escrow as a secondary business.
Broker Owned - Escrow Divisions - Licensed by the Department of Real Estate under the Broker's license. They are not an escrow company, but only a division of the individual broker. They cannot handle escrows where they are not a broker in the transactions. They cannot handle outside escrows like for sale by owners or refinance escrows.
Is your escrow officer "Certified"? Does it make a difference?
Yes, it does make a difference. A certified escrow officer is an experienced escrow officer. Only an experienced, well trained escrow officer will be holding a professional designation such as CEO (Certified Escrow Officer) or the California Escrow Association where any escrow officer, independent, title, bank and/or broker owned escrow officer may be a member. This professional designation is only given out after the applicant passes a very difficult test of knowledge and procedures. Make sure you use someone who knows escrow well and is experienced. Your best bet is a certified escrow officer, because you know they passed the test. Do not be afraid to ask "Are You Certified?"
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