Frequently Asked — Questions.

Escrow is a neutral, third-party process that holds funds, documents, and instructions until all terms of a transaction are met. In California, escrow is commonly used in real estate, but also extends to other industries and high-value transactions.

Why it matters: Escrow protects all parties by ensuring that no funds or property change hands until every condition is satisfied.
In most residential and commercial real estate transactions in California, escrow is not just common — it's essential. While not technically required by law, nearly all lenders and parties involved insist on escrow to ensure funds and documents are handled correctly.

Our recommendation: Always use an independent escrow company — like Menifee Valley Escrow — to keep the process transparent, impartial, and compliant.
A 1031 Exchange is a tax-deferred exchange of like-kind investment properties under Section 1031 of the IRS Code. Escrow plays a critical role in:
  • Holding funds securely between sales
  • Ensuring the timeline and replacement property rules are met
  • Protecting the transaction's tax benefits
  • Coordinating with a Qualified Intermediary (QI)
Why use an independent escrow company for 1031 exchanges? We act as a neutral third party, ensuring transparency, legal compliance, and proper document handling while keeping your investment protected.
Unlike escrow services tied to a real estate broker or title company, independent escrow companies are strictly neutral, regulated by the California Department of Financial Protection and Innovation (DFPI).

Unlike broker-owned and title-owned escrow departments, Menifee Valley Escrow is held to the highest standards in the industry — with full bonding, licensed staff, annual CPA audits, and Department of Justice background checks on every employee. 

 

 We don’t just promise trust — we’re required to prove it.

 

Protection & Oversight Independent Escrow Companies Broker-Owned Escrows Title-Owned Escrow Departments
Bonding Required ✔ ✘ ✘
Manager Qualifications Required ✔ ✘ ✘
Regular Operational Procedure Audits ✔ ✘ ✘
Annual CPA Audit Required ✔ ✘ ✘
Trust Funds Insured ✔ ✘ ✘
Financial Liquidity Requirements ✔ ✘ ✘
Escrow License Required ✔ ✘ ✘
DOJ Background Checks on All Employees ✔ ✘ ✘

That’s the independent escrow difference. That’s the Menifee Valley Escrow difference.

Want peace of mind with your next closing? Call us — we’re here to help.

We serve: Menifee, Sun City, Canyon Lake, Perris, Murrieta, All surrounding Riverside County areas! And we're licensed to handle transactions throughout the entire state of California.