What must the first escrow instructions tell you?
This page explains CIV § 1057.7: What escrow instructions must disclose.
The first escrow instructions must say who oversees the escrow holder. They must name the state license and agency, or state the law that allows the holder to work without that license. This notice must be easy to see and at least 10-point type.
Key points
The notice belongs in the first buyer and seller instructions.
It must identify a license or a legal exemption.
It cannot be buried only in a later change or extra page.
The type must be at least 10-point.
What this can look like
Before signing, a buyer can look at the first instructions and see whether the escrow holder is licensed by the state or is using an exemption.
What the law says
Initial buyer or seller escrow instructions must identify the holder’s license and regulator, or the authority under which an exempt holder operates.
Written buyer or seller instructions must identify the license name and the department that issued it, or the authority under which the person operates. 1
The statement must appear in at least 10-point type.
Who it covers
The rule covers instructions prepared by a DFPI-licensed escrow holder and by a person exempt under Financial Code section 17006.
It does not apply to supplemental escrow instructions or modifications to existing instructions. 1
Why this rule exists
The disclosure lets a buyer or seller see whether the holder is licensed under the Escrow Law or operating under an exemption tied to another regulator or profession.
It does not prove that the stated exemption actually applies. Section 17006.5 puts that burden on the person claiming the exemption.
Important history
Research gaps
The 1992 bill and committee files have not yet been added, so the Atlas does not claim a more specific legislative purpose than the disclosure requirement itself shows.
Key sources
These are the main records for checking this explanation. Numbered citations above link to the full list.
- 1Civil Code section 1057.7
Primary authority · Current operative statute · California Legislature
View source record
Full research packet (1 sources)
- 1Civil Code section 1057.7
Primary authority · Current operative statute · Full section
View source record
Article revisions
Version 1.0 · Last checked July 25, 2026 · Current through July 25, 2026. This article predates the proposed EIC review workflow. No EIC approval is claimed.
URL: https://escrowpedia.org/wiki/civ-1057-7