The information below is only useful for people who worked hard for their money, especially people who want straight talk on whether that money is safe in the hands of the escrow company recommended to them. 

In the state of California there are three types of escrow companies. The types are differentiated by the California government agency that oversees them. They are:

• Bureau of Real Estate escrow companies (BRE)

• Department of Insurance escrow companies (DOI)

• Department of Business Oversight escrow companies (DBO)

If regulatory oversight and insurance requirements are the measure, your money is not equally safe with all three. 

The chart below shows you the profound differences between the three types of companies.

“Wow! Escrow companies really are different. How can I know the difference?”

Here are some quick rules of thumb:

• Escrow companies that are combined with Title companies are DOI companies.

• Escrow companies that say they are “independent” or have a DBO license number published at the bottom of their website are DBO companies.

• Escrow companies which operate inside the walls of a real estate brokerage are BRE companies. Often, these companies are so indifferent to home sellers and buyers like you they don’t even bother to make a website for themselves. 

The best thing you can do is ask. Ask the escrow company or ask the person referring you to that company. 

If the person referring you to an escrow company is a real estate agent, you should ask them “Do you get something, like a better commission from your broker or free marketing material, if you send my escrow to this company?” 

The answer to that question can help you understand why your agent is steering you to an escrow company and should inform your decision on whether or not to hire the escrow company they recommend. 

You should know that section 17420 of the California Financial Code and the Real Estate Procedures Act (RESPA) prohibit people, such as real estate agents, from receiving a kickback for steering an escrow to an escrow company. So, if the agent is receiving a kickback like marketing materials in exchange for steering escrow business to an escrow company, the escrow company may be operating unethically. Your money is always at risk in the hands of unethical people. 

The information below is only useful for people who worked hard for their money, especially people who want straight talk on whether that money is safe in the hands of the escrow company recommended to them. 

In the state of California there are three types of escrow companies. The types are differentiated by the California government agency that oversees them. They are:

• Bureau of Real Estate escrow companies (BRE)

• Department of Insurance escrow companies (DOI)

• Department of Business Oversight escrow companies (DBO)

If regulatory oversight and insurance requirements are the measure, your money is not equally safe with all three. 

The chart below shows you the profound differences between the three types of companies.

“Wow! Escrow companies really are different. How can I know the difference?”

Here are some quick rules of thumb:

• Escrow companies that are combined with Title companies are DOI companies.

• Escrow companies that say they are “independent” or have a DBO license number published at the bottom of their website are DBO companies.

• Escrow companies which operate inside the walls of a real estate brokerage are BRE companies. Often, these companies are so indifferent to home sellers and buyers like you they don’t even bother to make a website for themselves. 

The best thing you can do is ask. Ask the escrow company or ask the person referring you to that company. 

If the person referring you to an escrow company is a real estate agent, you should ask them “Do you get something, like a better commission from your broker or free marketing material, if you send my escrow to this company?” 

The answer to that question can help you understand why your agent is steering you to an escrow company and should inform your decision on whether or not to hire the escrow company they recommend. 

You should know that section 17420 of the California Financial Code and the Real Estate Procedures Act (RESPA) prohibit people, such as real estate agents, from receiving a kickback for steering an escrow to an escrow company. So, if the agent is receiving a kickback like marketing materials in exchange for steering escrow business to an escrow company, the escrow company may be operating unethically. Your money is always at risk in the hands of unethical people.