It's easy - if they have you send the money to an escrow company in Hawaii they are following the law. If they have you send it to them (the closing company) they aren't.
That is not correct Denise. I comply with the law, the funds are sent to my office, made out to the Licensed Escrow Company I use in Hawaii. I then copy the check for my files so I know the money is in and overnight it to the escrow company in Hawaii. I have to do it that way so that your closing file is added to the check so that when it comes time to disburse the funds, the escrow company knows where the funds are in the escrow account.
Based on your comments, your saying I am not following the law, but we are. Where the check is sent to is immaterial. WHO the check is made out to is material. There are only 8 or 9 licensed escrow companies on the Island, and there is a list on the State banking page of WHO is licensed to handle escrow.
We have been in compliance with the Hawaii escrow requirement since the day the law took effect. I can not say that for my counterparts, but then I am also a licensed title agent and agency in Hawaii, so I have no choice but to follow the laws of that state or lose my licenses.