California Escrow Licensee Bond Overview
- Purpose: To ensure escrow agents uphold state law
- Who Needs It: All escrow agents and companies operating in California
- Regulating Body: The California Department of Financial Protection and Innovation
- Bond Amount: $25,000–$100,000
- Minimum Price: $250; credit-based
What Is a California Escrow Licensee Bond?
A California escrow licensee bond protects consumers from mishandling of escrow funds.
The California Department of Financial Protection and Innovation (DFPI) sets your bond amount at $25,000, $35,000 or $50,000 based on your average trust liability. You’ll need to add $5,000 of coverage for each additional location.
How Much Do Escrow Licensee Bonds Cost in California?
California escrow licensee bond premiums are based on your bond amount:
- You can buy the $25,000 bond instantly for $250.
- Bonds above $25,000 require a quick credit check. Premiums start at 1% of the bond amount.
Get your bond today!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a California Escrow Agent Bond Work?
When you file this bond, you enter into a three-party agreement.
| Bond Party | Description |
|---|---|
| Principal | The escrow agent purchasing the bond |
| Obligee | The California Department of Financial Protection and Innovation requiring the bond |
| Surety | The issuing surety provider |
If you break California escrow agent law, harmed parties can file claims against your bond. The surety will pay valid claims up to the full bond amount. However, you’ll need to refund the surety.
How Do I Get Bonded?
If you’re ready to get bonded, just follow these steps:
- Fill out the quote request form.
- Receive your personalized rate within one business day.
- Pay for your bond online or over the phone.
We’ll email your official bond form right after payment. Be sure to sign and file it with the DFPI.
Can I Get Bonded With Bad Credit?
Yes, the $25,000 bond doesn’t require a credit check. For higher bond amounts, your price may increase due to a poor personal credit score. Apply for a free quote with no impact on your score!
How Do I Renew My Bond?
California escrow bonds expire annually on the issue date. We’ll send you reminders starting 90 days before renewal. Simply pay the premium to extend your bond for another year.
Can I Make Changes to My Bond?
If you need to update your information or bond amount, email [email protected]. We’ll take care of any changes by issuing a bond rider or new bond form if needed.
How to Become an Escrow Agent in California
Follow these five steps to get a California escrow agent license:
- Register your business with the California Secretary of State.
- Buy a surety bond in the required amount.
- Register to join the Escrow Agents’ Fidelity Corporation (EAFC) or get a $125,000 fidelity bond.
- Get fingerprinted at a Live Scan location.
- Complete the application form and attach all supporting materials, including audited financial statements.
The application filing fee is $625, plus a $100 investigation fee.
Your license will remain active as long as you pay the required annual fees and maintain an active surety bond. There is no renewal application.
Do I Need to Be an EAFC Member?
The Escrow Agents’ Fidelity Corporation (EAFC) is a California nonprofit corporation that protects escrow companies from employee theft or fraud. Membership is required if you handle certain transactions, such as:
- Real estate transactions
- Business sales ("bulk sales")
- Fund or joint-control escrows
- Manufactured or mobile homes
- Real estate reservation deposits
- Promissory notes secured by real estate
If you don’t meet these criteria, you’ll instead need to file a $125,000 fidelity bond.
