CaliDave:
Not really. I guess you could look at the information on the back of the check and call the bank to verify it really deposited to that account, but that is about all I can see happening, and not even sure the bank could release that information.
Licensed Title/Escrow Companies have to maintain a seperate escrow account and a seperate operating account and not co-mingle funds. Violates the escrow laws. Licensed Title/Escrow Companies are required by most state laws to carry fidelity insurance (covers theft of clients funds) as well as surety bonding and errors and omissions insurance. Those requirements very by state.
Since they are licensed title companies, they write title insurance policies as well and every title underwriter (First American, Chicago, Stewart, etc) require the agent to turn in (depending on the state) either monthly, quarterly, etc reconciled escrow account information. They usually get copies of the bank statements, cancelled checks and audit reports. Most require an outside 3rd party to reconcile the books with a party that has no signature authority on any of the escrow accounts or is a licensed CPA.
Some states go further, like in Virginia where you have to maintain a seperate bank account for just Virginia transcations. Some states like CA and NV require the agent to maintain an escrow license, and follow there audit guidelines.
The expense to maintain licenses in every state you do business in, the fidelity bonds, which are only good for the state they were issued to, cost of fidelity insurance, audits, etc, eat into the profits or affect the charges that have to be charged. Which is why a lot of these companies do not get the licensing.
The point I am trying to make, is not all of these companies are licensed as escrow or title companies, so they do not fall under the radar of the states or title underwriters. Most probably do not maintain seperate escrow accounts and co-mingle funds.
Which is why John Faeth and I have always said to check out your closing company. If it were my money I would want to know someone else was watching it for me as well. About a year ago, there was a case in Florida where an attorney had a seperate unlicensed escrow company, at that time, Florida did not regulate escrow companies, who held deposits for real estate agents on houses that in the middle of the night disappeared with all the escrow money. There was at the time no government oversight or licensing requirements, no bond requirements, no insurance requirements, so a lot of people were left without the deposits they had placed on their homes they were buying.
Dave