What is "Escrow"?

In Nevada, escrow is typically handled through a title company.

"Escrow" is a process whereby an independent neutral third party (the "Title Company") works for both the buyer and the seller, and is authorized to follow the specific written instructions provided by the contract.

The title company performs the following duties to complete escrow:

 

• Holds the buyer's earnest money in escrow (which is applied towards the buyer's closing costs)
• Orders the payoff from the seller's lender
• Discovers any liens and insures they are released or paid off by close of escrow
• Provides a preliminary title report for the buyer
• Brings taxes etc up to date and prorates them between buyer and seller
• Directs the funding from the buyer's lender, receiving and returning the buyer signed loan documents to the lender
• Conducts the closing for the buyer and seller (separately), assisting them in the signing of documents
• Ensures all monies for both buyers and sellers are appropriated correctly
• Records and registers the deed
• Issues a check or wire transfer to the seller for any net proceeds from the sale