AB 704 Summary

• Expands authorization for underwritten title companies (stock corporations only) to conduct escrow services through business locations in California counties where licensed, regardless of property location.

• Establishes minimum net worth requirements ranging from $75,000 to $400,000 depending on document recording volume, and requires companies to maintain current assets of at least $10,000 in excess of current liabilities.

• Requires companies to obtain a commissioner-issued license ($354 filing fee) and furnish annual audits by independent certified public accountants ($313 filing fee), with penalties for late submissions.

• On and after July 1, 2016, mandates companies maintain a bond or cash deposit ($50,000-$100,000 depending on volume) or, with commissioner approval, an irrevocable letter of credit in lieu of the bond.

• Directs the commissioner to promptly release all escrow-related deposits made before July 1, 2016, once companies provide the new bond, deposit, or letter of credit requirements.