TESS Core is built for California brokers operating broker-controlled escrow divisions under the broker exemption. Stay compliant with DRE Regulation 2950, keep your trust account audit-ready, and run a clean in-house escrow operation without the usual headaches.
Book a Demo Back to TESS HomeRunning a broker-controlled 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 how California brokers actually use the broker-controlled escrow path under Financial Code §17006. Workflows reflect what a DRE auditor expects, not what a generic escrow vendor assumed.
File-opening rules, written disbursement authorizations, closing statements, and audit-accessible records — all handled the way Regulation 2950 requires.
Purchase contracts, preliminary title reports, and lender instructions all live with the file — tagged, time-stamped, and easy to find. Templates and structured intake keep your team from hunting through email threads.
Control record, per-file beneficiary ledgers, monthly reconciliation — the three layers DRE wants to see, kept in sync automatically.
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 launch compliant broker-controlled escrow divisions from the ground up — the right way, the first time.
We walk you through every structure decision — office location, branding, fictitious business names, branch filings — and handle the DRE paperwork (RE 203, RE 242, RE 204, RE 204A) so you don’t have to puzzle over it on your own.
We build the supervision policies, authority matrices, and file-handling procedures that keep you inside the broker exemption and ready for any DRE audit. We translate Regulations 2832, 2834, 2835, 2831.2, 2950, and 2951 into workflows your staff can actually follow.
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-controlled 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 you set up the control record, beneficiary ledgers, and monthly reconciliation workflow that keep your trust account balanced and audit-ready. Whether paper, spreadsheet, or TESS software — we stand up a system you can actually maintain.
Not sure if your intended setup qualifies under California Financial Code Section 17006? We’ll review your structure, identify red flags, and help you decide between a broker-controlled division and a full DFPI-licensed independent escrow company.
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-controlled 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 broker-controlled 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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