BROKER ESCROW. CA BRE licensees with Broker controlled Escrow – the Escrow Activity Report is due within 60 days of the end of the calendar year in which the escrow threshold was met.
Brokers who are exempt from the Escrow Law (California Financial Code Section 17006) and who engage in broker-controlled escrow activities for five or more transactions in a calendar year or whose escrow activities equal or exceed $1,000,000 in a calendar year will meet the escrow threshold and will, therefore, have to submit an Escrow Activity Report, RE 890 (Business and Professions Code Section 10141.6).
The report is due within 60 days after the end of the calendar year in which the broker met the escrow threshold. It is an online submission form.
A broker who fails to submit the Escrow Activity Report is subject to a penalty of $50 per day for each day the report has not been received by the Bureau, up to and including the 30th day. On and after the 31st day, the penalty is $100 per day, not to exceed a total of $10,000. In addition, the broker is subject to disciplinary action against his or her license(s).
Escrow Activity Report Instructions
Enter information for the calendar year in which the escrow threshold was met. (Note: The threshold is five or more broker-controlled escrow transactions or broker-controlled escrow activities equal to or exceeding $1,000,000.)
- Calendar year in which the escrow threshold was met
- Number of escrows conducted
- Dollar volume of escrowed transactions
- Address and telephone number at each location at which broker-controlled escrow activities occurred
- Total number of escrow officers
For each escrow officer:
- Legal name
- CalBRE license number (if applicable)
- Mailing address
- Email address
- Whether or not the escrow officer has been barred from any real estate-related business activity
- Whether or not the escrow officer has been convicted of any misdemeanors or felonies
- Number of trust accounts held by the broker for escrow activities
- For each trust/bank account:
- Account number
- Name of financial institution
- Signatory information – including name, DRE license number (if applicable), and fidelity bond coverage (if applicable)
There are hefty fines for failure to submit the report.