California Codes, Civil Code - CIV, Division 2 — Property, Part 4 — Acquisition of Property, Title 4 — Transfer, Chapter 1 — Transfers in General, Article 3 — Mode of Transfer, Section 1057.5

Except for the normal compensation of his own employees, no person acting as an escrow agent whether required to be licensed as such or not, shall pay over to any other person any commission, fee, or other consideration as compensation for referring, soliciting, handling, or servicing escrow customers or accounts.

No escrow agent shall enter into any arrangement, either of his own making or of a subsidiary nature, or through any other person having a dual capacity, or through any person having a direct or indirect interest in the escrow, or other device, permitting any fee, commission, or compensation which is contingent upon the performance of any act, condition, or instruction set forth in an escrow, to be drawn or paid, either in whole or in part, or in kind or its equivalent, prior to the actual closing and completion of the escrow.

The provisions of this section shall not be deemed to supersede, negate, or modify any of the provisions of Section 12404 of the Insurance Code.

Notes

Prohibits an escrow agent, except for normal employee compensation, from paying referral, solicitation, handling, or servicing compensation to another person and from arranging payment of escrow-contingent fees before actual closing and completion. The provision applies whether or not the agent must be licensed and does not supersede, negate, or modify the referenced Insurance Code provision.

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