TESS is designed for California broker-owned, in-house escrow divisions with two-factor authentication, secure document access, trust accounting, reconciliation, and DRE-focused recordkeeping workflows. Technology supports the process; the broker remains responsible for regulatory compliance. Learn more about TESS security.
Request More Information Back to TESS HomeRunning a broker-owned, in-house escrow division means living inside the broker exemption, the trust fund regulations, and the DRE audit checklist all at once. Here’s how TESS makes that easier.
Designed around the way California broker-owned escrow operations handle files, trust records, disbursements, and supervision under the broker exemption.
File-opening records, written disbursement authorizations, closing statements, and organized file records are incorporated into workflows designed around DRE requirements.
Purchase contracts, preliminary title reports, and lender instructions stay with the escrow file. Two-factor authentication and secure document access help keep sensitive transaction documents out of ordinary email attachments while keeping your team organized.
Control records, per-file beneficiary ledgers, and monthly reconciliation workflows help keep trust-account records organized and consistent.
Not sure if your structure fits the exemption? Our setup services walk you through it — and the free broker-owned escrow handbook covers the rules in plain English.
Whether you’re a single broker just opening an in-house escrow or a regional brokerage running multiple offices, TESS scales with you.
We don’t just sell software. We help California real estate brokers organize the operational pieces involved in launching a broker-owned, in-house escrow division, while the broker and professional advisers remain responsible for legal and regulatory compliance.
We help organize setup decisions such as office location, branding, fictitious business names, branch considerations, and information commonly used for DRE forms such as RE 203, RE 242, RE 204, and RE 204A.
We help translate trust-fund, supervision, authority, and file-handling requirements into practical workflows your staff can follow. TESS does not provide legal advice or determine whether a brokerage qualifies for an exemption.
A great escrow officer is the difference between a division that thrives and one that becomes a headache. We’ll introduce you to experienced California escrow professionals who understand broker-owned, in-house escrow and fit your brokerage’s culture.
Trust accounting is the fastest way to get in trouble if it’s handled wrong. We connect you with bookkeepers who specialize in broker trust accounts and know the three-layer reconciliation DRE auditors expect — every single month.
We help organize the control record, beneficiary ledgers, and monthly reconciliation workflow so trust-account records are easier to maintain and review. Whether paper, spreadsheet, or TESS software, the goal is a consistent process your team can sustain.
Not sure how your intended setup relates to California Financial Code Section 17006? We can help organize the operational questions and alternatives to discuss with your broker, counsel, or other professional advisers.
Read the complete broker-owned escrow division handbook directly from TESS Resources.
Everything a California real estate broker needs to know about starting a compliant in-house escrow division — written in plain English. Covers the broker exemption, trust account setup, the 10 rules in DRE Regulation 2950, monthly reconciliation, the RE 890 annual report, and the complete launch checklist. Download it free and see exactly what you’re getting into before you file a single form.
Straight answers to the questions California brokers ask most often about starting and running an in-house escrow division.
A broker-owned escrow (also called a broker-controlled escrow division) is an in-house escrow operation run by a California real estate brokerage under the broker exemption in California Financial Code Section 17006. It handles escrow for the brokerage’s own transactions and is regulated by the California DRE.
You can start a broker-owned, in-house escrow division without a separate DFPI license if you qualify for the broker exemption. The core steps: confirm the exemption applies, open a compliant trust account, build the required trust records, file any needed DRE forms (RE 203, RE 242, RE 204/204A), and adopt written supervision policies.
California Financial Code Section 17006(a)(4) lets a licensed broker act as an escrow holder without a separate escrow license, as long as the broker is a party or agent in the deal and is performing acts for which a real estate license is required. The escrow must be incidental to that licensed real estate activity.
No. If your setup fits the broker exemption, your existing California real estate broker license is sufficient. You still have to comply with DRE Regulations 2832, 2834, 2835, 2831.2, 2950, and 2951 governing trust funds, records, and escrow conduct.
The RE 890 is the annual Escrow Activity Report required by Business and Professions Code Section 10141.6 when your in-house escrow activity reaches 5 or more transactions or $1,000,000 or more in a calendar year. It is filed online at the DRE Escrow Activity Reporting System within 60 days after year-end.
Under DRE Regulation 2832(e), a broker acting as escrow holder must deposit all funds received into the trust account — or deliver them to the owner or a neutral escrow — no later than the next business day after receipt. This is stricter than the three-business-day rule that applies to ordinary broker trust funds.
We help California brokers go from idea to fully operational broker-owned escrow division — with the right software, the right compliance, and the right people. Tell us where you are and we’ll show you what’s next.
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