Broker Bill has the exclusive listing for Terri's home. Bill brought Terri an offer from Alexis, which Terri accepted. In order to expedite the transaction, Bill offered to handle the escrow if both Terri and Alexis agreed. Which statement is true?

Bill's offer is unethical and illegal.

Bill's offer is ethical and legal and he can accept compensation for handling the escrow.

Bill's offer is valid and ethical; however, accepting any compensation would make it illegal.

Bill can conduct the escrow, but he will need a written endorsement from the state of California to receive compensation.