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ResourcesHelpful escrow resources
Links to the organizations that regulate and support California real estate transactions, plus a plain-language glossary of common escrow terms.
Useful links
Organizations & agencies
CA Dept. of Financial Protection & Innovation
Licenses and regulates independent escrow companies in California.
California Department of Real Estate
Licensing and consumer information for real estate transactions.
California Association of REALTORS®
Statewide trade association for real estate professionals.
California Escrow Association
Professional education and certification for escrow officers.
State of California
Official California state government portal.
L.A. County Registrar-Recorder
Property document recording for Los Angeles County.
Glossary
Escrow terms, explained
- Escrow
- A neutral arrangement where an impartial third party holds funds and documents until all conditions of an agreement are met.
- Escrow instructions
- The written directions signed by buyer and seller that tell the escrow holder how to carry out the transaction.
- Earnest money deposit
- The good-faith deposit a buyer places into escrow after an offer is accepted.
- Preliminary title report
- A report showing current ownership, liens and encumbrances on a property before title insurance is issued.
- Contingency
- A condition — such as inspection, appraisal or loan approval — that must be satisfied or removed before closing.
- Settlement statement
- The itemized accounting of all credits, debits, fees and prorations for each party.
- Prorations
- The division of ongoing costs such as property taxes and HOA dues between buyer and seller as of the closing date.
- Recording
- Filing the deed and loan documents with the county recorder, which makes the transfer a matter of public record.
- 1031 exchange
- A tax-deferred exchange of investment property under Section 1031 of the Internal Revenue Code.
- Bulk sale
- The transfer of a business's assets, which in California often requires a dedicated escrow.
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