California Escrow Law and DFPI Licensing
Independent escrow companies in California are licensed by the state. Here's what the law requires and how to check a license.
Last updated November 2026
The Escrow Law
The Escrow Law is Division 6 of the Financial Code (§17000 and following). The DFPI licenses and examines escrow agents.
An escrow business may be run only by a corporation organized for that purpose and licensed by the DFPI (DFPI – About the Escrow Law, DFPI Escrow Law FAQ).
Who must be licensed and who's exempt
These are exempt from the license (§17006):
- Banks, trust companies, savings and loans, credit unions and insurance companies
- California attorneys with a bona fide client relationship who aren't actively in the escrow business
- Businesses that prepare title searches or abstracts
- Licensed real estate brokers acting as agent or party in the transaction
The attorney and broker exemptions are personal and can't be used to run escrows for others.
What DFPI licensing means for you
Examinations. The DFPI examines licensed escrow agents.
Trust accounts. Escrow funds are held in a trust account, separate from the company's own money.
Fidelity coverage. Licensed escrow agents that handle real estate escrows must be members of the Escrow Agents' Fidelity Corporation (EAFC) (§17312). EAFC is not a state agency.
Records. Escrow agents keep escrow records at least 5 years after close of escrow (10 CCR §1737.3).
Referral fees and inducements are prohibited
An escrow agent may not pay any commission, fee or other consideration for referring, soliciting, handling or servicing escrow customers, other than normal pay to its own employees (§17420).
How to check a license
Look up any escrow company on the DFPI website.
Cloud Escrow's license
Cloud Escrow is an independent escrow company licensed by the DFPI, license 96DBO-80565.
Escrow law FAQ
Who licenses escrow companies in California?
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The DFPI licenses and examines escrow agents under the Escrow Law, Division 6 of the Financial Code (§17000 and following).
Can an escrow company pay referral fees?
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No. An escrow agent may not pay any commission, fee or other consideration for referring, soliciting, handling or servicing escrow customers, other than normal pay to its own employees (§17420).
How do I check an escrow license?
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Check it on the DFPI website, dfpi.ca.gov. Cloud Escrow's DFPI license is 96DBO-80565.
Ready to open escrow?
This guide is general information, not legal or tax advice. Customs vary by county, and every cost is negotiable in your purchase agreement.