California Construction Escrow Fees
Shopping for escrow services without knowing the fee breakdown is like bidding a job without blueprints. In 2024, the average California construction escrow fees per phase ran $400 to $600 flat, plus 0.15 % to 0.25 % of the draw amount. On a $5 million townhome complex in Ontario, that added up to $7,500 total, spread across six draws. Below is the exact fee card we send to developers so there are no surprises when the wire hits.
Fee Card: Los Angeles and Orange County
We surveyed twenty DFPI licensed escrow companies last quarter. The table shows median pricing; outliers above or below 15 % were tossed. All numbers are USD and include unlimited wire, courier, and document prep.
- Site Prep Draw: $450 flat plus 0.15 % of disbursement
- Foundation Draw: $500 flat plus 0.18 %
- Frame Dry-In Draw: $550 flat plus 0.20 %
- Rough MEP Draw: $550 flat plus 0.20 %
- Finishes Draw: $500 flat plus 0.18 %
- Final Draw & Release: $450 flat plus 0.15 %
Surety Bond and City Filing Costs
Most lenders require a $50k surety bond or 5 % of gross deposits, whichever is higher. Los Angeles Department of Building and Safety charges $287 to file the bond, and Orange County adds $95 for recording. These fees are one time and not part of the per draw escrow cost, but they do hit your pro-forma on day one.
Volume Discounts That Kick In Fast
Developers running three or more concurrent projects qualify for 10 % off the flat fee. If you commit to $30 million in annual escrow volume, we drop the percentage fee to 0.12 % flat. That saved one Newport Beach builder $42k last year, more than enough to cover his annual golf membership.
Sample Budget: $5 Million Townhome Project
Here is the real world math on a 14 unit infill site we closed in March. Total escrow fees including bond and city recording: $8,341, or 17 basis points of the loan. That is less than half the cost of a typical construction insurance rider.
Hidden Fees to Watch For
Some shops advertise low flat fees then nail you with $75 wire charges or $50 courier runs. Our fee card includes unlimited domestic wires and county courier service. The only extra charge is for after hours same day wires, which runs $35 and is clearly marked in the engagement letter.
How to Lock Your Quote in 24 Hours
Email us your construction loan amount, project address, and number of units. We send a locked fee letter good for 45 days. If the loan size changes, we simply adjust the percentage portion; the flat fee stays the same. If you want more information, contact us or call us.
Bottom Line: Budget 20 Basis Points and Sleep Easy
If you set aside 0.20 % of the construction loan for escrow fees, you will never be surprised. On most So Cal projects that is still cheaper than one change order. And when you choose a firm that publishes its fee card upfront, you get the added bonus of no awkward conversations when the draw request hits.
Fee ranges current as of Q2 2025; always request an updated fee letter before signing your escrow agreement.
Sources: California Department of Financial Protection & Innovation fee survey 2025, Los Angeles County Recorder fee schedule, DFPI, Secured Trust Escrow internal fee database.
