The American Land Title Association states: "An escrow is a transaction in which an impartial third party acts in a fiduciary capacity as an agent for the seller, buyer, borrow/lender in carrying out any or all of the following:
The escrow holders have fiduciary responsibility for prudent processing, safeguarding, and accounting for funds entrusted to them by escrow customers. Accordingly, this responsibility results in significant exposure to losses from inadvertent or intentional failure to execute their duties properly."
All title insurance agents (and direct operations) licensed in Texas must have their trust (escrow) fund accounts audited annually by an independent Certified Public Accountant (“CPA”). The staff at Mays & Associates, PLLC has been auditing title agent trust (escrow) fund accounts for over 20 years in accordance with the Texas Department of Insurance rules & regulations. In addition, we provide audit & assurance services for other states.
If you need assistance with best practices, financial statement audits, escrow audits, or regulatory compliance, please contact us.