Every escrow agent operating in the State of California must have the California Bond of Escrow License Bond and cannot legally conduct business without it according to Financial Code section 17202. It helps ensure the general safety of money put into escrow. The amount varies from $25,000 to $50,000. Other amounts may be added for additional escrow locations. The base bond amount is determined on trust in the escrow agent.
What are the requirements in order to be a licensed Escrow Agent in the state of California?
- Payment of $625 for the first office location and $425 for each additional office location. There is also an investigation fee of $100 for every location.
- Membership in Escrow Agents Fidelity Corporation
- Fidelity bonding – the fidelity bond must provide fidelity coverage on each officer, director, trustee and employee or not less than $125,000 for the purpose of indemnifying the escrow agent for loss of trust obligations held by the escrow agent as a result of fraudulent or dishonest abstraction, etc.
- Audited financial statements indicating liquid assets in excess of current liabilities of $25,000 and tangible assets in excess of total liabilities of $50,000.
- Surety bond – the minimum amount is $25,000. This amount may increase up to $50,000 depending on the escrow liability of the company. There is an additional $5,000 for each additional license.
- All stockholders, officers, directors, managers and employees must submit to a background check
- Have a minimum of five years experience
- Signed affidavit
How do I obtain a California Escrow Licensee Bond?
Complete our easy to navigate online application. Within one business day, one of our licensed agents will contact you with a no-obligation quote for 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 bond experts at Surety Solutions Insurance Services, Inc. (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.