True Neutrality in Property Transactions
When you think about the simple definition of escrow: “escrow is the neutral third party in a real estate transaction,” what does that say to you? Typically, one would think an escrow company should be an independent or non-affiliated company. Right?
Is Your Escrow Company Truly Neutral and Independent?
It should be as simple as that, but many escrow companies are run by real estate brokerages, title companies and mortgage companies that require or “recommend” their real estate agents, title reps, or lenders to market their services to the consumers of a real estate transaction.
Most consumers are not aware that they have the power to choose the service providers they use for their real estate transactions. Many consumers go with the escrow service providers that their real estate agent or lender recommends to them. Consumers rarely take the time to research and find the right service providers for them.
Escrow companies in California are in 1 of 2 categories:
- Non–Affiliated/Independent (Licensed)
- Affiliated (Controlled/Non-Licensed)
Independent Escrow Services
As an independently owned escrow company, Oakwood Escrow is held to a much higher standard than affiliated escrow companies. Because Oakwood Escrow is an independent escrow company, we are licensed by the California Department of Business Oversight (DBO). The license that Oakwood Escrow holds regulates the procedures and practices of our company. Because we have stringent requirements overseen by the California Department of Business Oversight (DBO), the consumer has protection in the escrow process. Oakwood Escrow is independent, licensed, and neutral. We are bonded and a member of the Escrow Agents’ Fidelity Corporation. There many benefits to working with Oakwood Escrow as your independent escrow company. By far, the most important benefit is that we are a 100% neutral third party that protects the consumer.
Licensed Escrow Service Protect You Better
Affiliated escrow companies are non-licensed companies owned and operated by a real estate brokerage, mortgage brokerage, banks, or title insurance companies and operate under different rules and regulations than independent escrow companies. Because they operate under different rules and regulations, typically, they do not protect their clients as well as an Independent Escrow company.
Oakwood Escrow believes that consumers’ interest should not be taken lightly. The escrow holder must remain impartial during the escrow period to ensure fair representation of all parties. It is crucial that the broker, lender, or consumer makes a knowledgeable and informed decision in choosing an escrow company.
Remember, an Independent Escrow company is a 100% neutral third party. If you are searching for an escrow holder for yourself, or if you are looking to recommend one to a client, an Independent Escrow company gives you the peace of mind and protection you need.