If ABC Title Insurance Company wants to get in the business of handling escrows what licenses would it have to obtain? A) A title company does not need to obtain a special license to handle escrows.
B) A title company is not permitted to handle escrows in any capacity.
C) If the title company has been in business for a minimum of 5 years, it may handle escrows without a special license.
D) If the title company has been in business for a minimum of 10 years, with annual audits for review by the State of California, it does not need to be specially licensed to handle escrows in California.

The correct option is;

A) A title company does not need to obtain a special license to handle escrows

Explanation:

Escrow is a legal tool of finance that enable two parties in a transaction that is in the process of being completed to place asset or escrow money in the possession of a third party on their behalf for the purpose of the transaction

Items that can be held in escrow accounts includes money, securities, and other forms of assets

A provider of escrow services must be licensed in some states. Bodies that do not need to be licensed in order to perform escrow services includes attorneys of persons involved in a real estate transaction, commercial banks, trust companies, savings and loans or insurance companies, title companies as well as brokers mandated to perform escrow service for their client who are into real estate.

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