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The following items represent a typical list of what an escrow holder does
or does not do:

The Escrow Holder:

•Serves as the neutral third party to become the holder of all documents
and monies and
communicate to all parties in the transaction

IN ACTION • Prepares escrow instructions
• Requests a preliminary title search to deliver to all parties
• Requests a bene ciary’s statement if debt or obligation is to be taken
over by the buyer
ESCROW • Complies with lender’s requirements, speci ed in the escrow agreement
• Receives purchase funds from the buyer

WHAT IS IT AND • Prepares or secures the deed or other documents related to escrow
• Prorates taxes, interest, insurance , and rents according to instructions
WHY DO I NEED IT? • Secures releases of all contingencies or other conditions as imposed on
any particular escrow
• Records deeds and any other documents as instructed
Buying or selling a home (or other type of real property) usually • Closes escrow when all the instructions of buyer and seller have been
involves the transfer of large sums of money. Therefore, it is imperative carried out
that the transfer of these funds and related documents from one party • Disburses funds as authorized by instructions, including charges for title
to another be handled in a neutral, secure and knowledgeable insurance, recording fees, real estate commissions, and loan payo s
manner. For the protection of buyer, seller and lender, the escrow • Prepares nal statements for all parties accounting for the disposition of
process was developed as a neutral third party to real estate all funds deposited in escrow (these are useful in the preparation of tax
transactions. returns).

As a buyer or seller, you want to be certain all conditions of sale have The Escrow Holder Does Not:
been met before property is recorded and money changes hands.
Simply stated, the escrow holder impartially carries out the • O er legal or tax advice
written instructions given by the principals. This includes receiving • Negotiate the transaction
funds and documents necessary to comply with those instructions, • O er investment advice
completing or obtaining required forms and handling nal delivery of
all items to the proper parties upon the successful completion of the CLEAR AS MUD? GIVE US A
escrow.
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The escrow must be provided with the necessary information to close THIS UP FOR YOU
the transaction. This may include loan documents, tax statements,
hazard insurance policies, title insurance policies, terms of the sale and 775.727.5858
any seller-assisted nancing, and requests for payment for various
services to be paid out of escrow funds.

If the transaction is dependent on arranging new nancing, it is the
buyer or the buyer’s agent’s responsibility to make the necessary
arrangements. Documentation of the new loan agreement must be in
the hands of the escrow holder before the transfer of the property can
take place. A real estate agent can help identify lending institutions
that could be of bene cial service to the buyer.

When all the instructions in the escrow have been carried out, the
closing can take place. At this time, all outstanding funds are collected
and fees-such as title insurance premiums, real estate
commissions, termite inspection charges-are paid. Title to the
property is then transferred under the terms of the escrow
instructions and appropriate title insurance is issued.

In Nevada, escrow requires all funds to be in the form of “good funds,”
generally, meaning wired funds. Always check with the escrow
company to determine what they require to avoid any delays caused
by the necessity of holding funds to clear.