Reviewed by the Sky Escrow team, a California DFPI-licensed escrow company serving Los Angeles County.
Last updated: August 25, 2026
Yes. In California, the buyer generally has the right to choose the escrow company that handles the transaction. A seller’s agent may suggest one in the listing or the offer paperwork, but that suggestion isn’t binding — escrow selection is a negotiated term of the purchase agreement, and either party can propose a different, mutually agreeable company before the contract is signed.
Who Actually Picks the Escrow Company in California?
In most Southern California residential transactions, the buyer names the escrow company in the written offer, and the seller accepts, counters, or leaves it as proposed. Once both sides sign, whichever company is named in the purchase agreement is the one that opens the file.
This practice has a specific statutory backstop: California Civil Code §§1103.20-1103.23, enacted by SB 1051 in 2014 and known as the “Buyer’s Choice Act,” bars a seller of residential property with one to four units from requiring, as a condition of the sale, that title insurance or escrow services be purchased from a particular company the seller chooses. Under Civil Code §1103.22, a seller who violates this can face treble damages and licensing discipline.
Can the Seller or Listing Agent Insist on Their Own Escrow Company?
No — not unilaterally. A seller or listing agent can request a particular escrow company, and it’s common for a seller to name one in the listing to speed up early paperwork. But that request only becomes binding if the buyer agrees to it in the signed purchase agreement.
If a buyer would rather use a different licensed escrow company, that’s a normal, negotiable point — no different from negotiating price or a closing date. In practice, most buyers accept the seller’s suggested escrow company when there’s no strong reason to switch, simply to keep the transaction moving.
Does My Agent or Lender Get to Decide Instead of Me?
Your real estate agent can recommend an escrow company, but the decision belongs to you. Agents typically suggest companies they’ve had reliable experience with, which is a reasonable starting point — but you’re free to ask questions or request an alternative.
Lenders don’t choose the escrow company either, but they do set requirements it must meet: proper DFPI licensing, the ability to handle loan document coordination correctly, and — for wired funds — verified account details before the lender will release closing funds. As long as the escrow company you choose meets those requirements, a lender has no basis to override your selection.
Escrow Selection on the California Purchase Agreement
Most Los Angeles-area contracts are written on the California Association of Realtors (C.A.R.) Residential Purchase Agreement, which includes a line where the parties name the escrow holder for the transaction. Residential Purchase Agreement Whoever is named there — buyer’s choice, seller’s choice, or a company both sides agreed on — is who opens the file once the contract is signed.
California requires that company to be licensed by the Department of Financial Protection and Innovation (DFPI) under the California Escrow Law, regardless of who selected it. California Escrow Law That licensing requirement is the same no matter which party made the choice.
What If Buyer and Seller Can’t Agree on an Escrow Company?
Disagreement over escrow selection is uncommon, but when it happens it’s resolved the same way as any other contract term: through counter-offer. A buyer can name a company in the initial offer, the seller can counter with a different one, and the final choice is whatever both sides sign off on. Neither party can force the other to use a specific company once there’s a genuine objection on the table.
Frequently Asked Questions
Can I choose my own escrow company in California?
Yes. California buyers generally have the right to select the escrow company, subject to the seller agreeing to it as part of the signed purchase agreement.
Who has the final say on which escrow company is used — buyer or seller?
It’s a negotiated term, not a unilateral decision by either side. Whichever company is named in the fully signed purchase agreement is the one that opens the file.
Can my real estate agent choose the escrow company for me?
An agent can recommend one, but the final decision is yours. You can accept your agent’s suggestion or ask to use a different licensed escrow company.
Does my lender have to approve the escrow company I choose?
Your lender doesn’t pick the company, but it will confirm the one you’ve chosen is properly licensed and capable of handling loan document coordination and wired funds correctly.
Can I switch escrow companies after escrow has already opened?
It’s possible, but it can cause delay, since title work, fund deposits, and lender information typically need to be re-requested from the new company. Raising your preference before the contract is signed avoids this.
Choosing the Escrow Company That’s Right for You
If you’re weighing whether to accept a suggested escrow company or name your own, it helps to know what actually separates one from another beyond price. Sky Escrow, Inc. handles residential, commercial, refinance, and specialty escrow transactions for buyers, sellers, and agents throughout the greater Los Angeles area, and is glad to answer questions before you name an escrow company in your offer.
Sky Escrow, Inc.
15760 Ventura Blvd, Suite 1050, Encino, CA 91436
Phone: (818) 712-0000 / (888) 891-0002
Email: info@skyescrow.com
Licensed by the California Department of Financial Protection and Innovation (DFPI). License No. 96DBO-214073. License status: Active.
This article is for general informational purposes and is not legal, financial, or tax advice.