FINANCIAL CODE
SECTION 17000-17010
17000.  This division is known and may be cited as the "Escrow Law."17001.  Unless the context otherwise requires, the definitions setforth in this chapter govern the construction of this division.17002.  "Commissioner" means the Commissioner of Corporations.17002.5.  "Person" means, in addition to the singular, persons,group of persons, co-operative, association, company, firm,partnership, corporation, limited liability company, or other legalentity.17003.  (a) "Escrow" means any transaction in which one person, forthe purpose of effecting the sale, transfer, encumbering, or leasingof real or personal property to another person, delivers any writteninstrument, money, evidence of title to real or personal property, orother thing of value to a third person to be held by that thirdperson until the happening of a specified event or the performance ofa prescribed condition, when it is then to be delivered by thatthird person to a grantee, grantor, promisee, promisor, obligee,obligor, bailee, bailor, or any agent or employee of any of thelatter. (b) With regard to Internet escrow companies, "escrow" alsoincludes any transaction in which one person, for the purpose ofeffecting the sale or transfer of personal property or services toanother person, delivers money, or its Internet-authorizedequivalent, to a third person to be held by that third person untilthe happening of a specified event or the performance of a prescribedcondition, when it is then to be delivered by that third person to agrantee, grantor, promisee, promisor, obligee, obligor, bailee,bailor, or any agent or employee of any of the latter.17004.  "Escrow agent" means any person engaged in the business ofreceiving escrows for deposit or delivery.17004.5.  "Internet escrow agent" means any person engaged in thebusiness of receiving escrows for deposit or delivery over theInternet.17005.  "Licensee" means any person holding a valid, unrevokedlicense as an escrow agent.17005.1.  "Joint control agent" means a person engaging in thebusiness of receiving money or other property for disbursal or use inpayment of the cost of labor, materials, services, permits, fees, orother items of expense incurred in the construction of improvementsupon real property. As used in this section, "in the business" meansthe conduct of the aforesaid transaction either for compensation orwithout compensation as a primary business or as an incidence toanother business, but shall not mean the conduct of the business ofreal estate lending or of acting as an authorized representative,agent or loan correspondent for such a lender.17005.2.  "Business location" and "business office location" mean afacility or other place of business where a person engages in thebusiness of receiving an escrow for deposit or delivery, but does notinclude a customer contact center.17005.3.  "Customer contact center" means a facility operated by anInternet escrow agent that exists solely for the purpose ofresponding to customer electronic messages and telephone inquiries;provided, that no receipt or disbursements relating to an escrow aremade from the facility; and provided further, that any documentationor other material generated, transmitted, or otherwise sent from thefacility can be reviewed at any time from the business location ofthe Internet escrow agent.17005.4.  "Person subject to this division" means any personundertaking the performance of escrow agent services. Unlessspecifically exempted, as in Section 17006, however, this definitionshall not be used to exclude anyone.17005.5.  "Within this state" means any activity of a personrelating to receiving escrows for deposit or delivery that originatesfrom this state and is directed to persons outside this state, orthat originates from outside this state and is directed to personsinside this state, or that originates inside this state and isdirected to persons inside this state, or that leads to the formationof a contract and the offer or acceptance thereof is directed to aperson in this state, whether from inside or outside this state andwhether the offer was made inside or outside this state.17005.6.  Except as provided for in Section 17004, "escrow agent" asused in this division includes joint control agents and Internetescrow agents.17006.  (a) This division does not apply to: (1) Any person doing business under any law of this state or theUnited States relating to banks, trust companies, building and loanor savings and loan associations, or insurance companies. (2) Any person licensed to practice law in California who has abona fide client relationship with a principal in a real estate orpersonal property transaction and who is not actively engaged in thebusiness of an escrow agent. (3) Any person whose principal business is that of preparingabstracts or making searches of title that are used as a basis forthe issuance of a policy of title insurance by a company doingbusiness under any law of this state relating to insurance companies. (4) Any broker licensed by the Real Estate Commissioner whileperforming acts in the course of or incidental to a real estatetransaction in which the broker is an agent or a party to thetransaction and in which the broker is performing an act for which areal estate license is required. (b) The exemptions provided for in paragraphs (2) and (4) ofsubdivision (a) are personal to the persons listed, and those personsshall not delegate any duties other than duties performed under thedirect supervision of those persons. Notwithstanding the provisionsof this subdivision, the exemptions provided for in paragraphs (2)and (4) of subdivision (a) are not available for any arrangemententered into for the purpose of performing escrows for more than onebusiness.17006.5.  In any proceeding under this law, the burden of proving anexemption or an exception from a definition is upon the personclaiming it.17008.  No foreign corporation shall transact any escrow business inthis State without first complying with all the requirements of thisdivision, nor until it has executed and filed with the commissionera written instrument appointing the commissioner its attorney uponwhom all process in any action or proceeding by any resident of thisState against it may be served with the same force and effect as ifsuch corporation were formed under the laws of this State, and hadbeen lawfully served with process in this State. Service of processby a resident of this State upon the commissioner constitutespersonal service on the foreign corporation.17009.  The commissioner shall forward by prepaid registered mail acopy of every paper served under this chapter, to the secretary ofthe corporation at its last known post-office address as shown by therecords and reports of the corporation filed in the office of thecommissioner.17010.  The commissioner shall collect from the plaintiff at thetime of service, the sum of two dollars ($2) for each copy of processserved on him pursuant to this chapter. This sum shall be recoveredby the plaintiff as part of his taxable costs, if he succeeds in thesuit or proceeding.