What Is Sub Escrow?

Sub Escrow is a package of financial services provided by California Title Company that includes processing the loan proceeds from the buyer or borrower's lender and performing the required payments to existing liens against the property.

The new lender sends the loan proceeds to California Title Company when the transaction is ready to close escrow.

The sub escrow staff then calculates the amount needed to pay off prior mortgages, property tax liens that may be due and any other monetary encumbrances against the property. The remaining funds are then disbursed to the escrow holder for disbursement.

A sub escrow fee is charged for the performance of the above services. It is a rate that is filed with the California Department of Insurance, as are all title insurance charges.