An escrow is a deposit of funds or documents by one party for the delivery to another party upon completion of specific conditions or events. It is an independent neutral account by which the interests of all parties to the transaction are protected.
The escrow holder has the responsibility to watch over the funds and/or documents and transfer title only when all conditions and requirements have been completed by all parties to the transaction.
The escrow process allows the parties to the transaction, which may be a Buyer, Seller, Lender or Borrower, to have a neutral person handling the collection of funds and documents, then making sure the transaction get closed according to the terms and conditions of the agreement between the parties.
The duties of the escrow holder include:
- Collection of all funds and documents
- Obtaining information from third parties to complete the settlement statement
- Preparing documents to transfer title
- Responding to requests from the parties
- Closing escrow upon completion of all terms and conditions
- Disbursing all funds pursuant to the purchase agreement
- Orders the Policy of Title Insurance
Generally, your real estate agent or lender will open the escrow. As soon as the purchase agreement is fully completed by both Buyer and Seller, or the lender is ready to submit a loan, the escrow company is contacted with the required information and deposits and the escrow is opened.
All parties signing documents must bring a valid form of identification, which includes a photo. A driver's license, state identification card, passport or military identifications are the most commonly used and accepted. These items are needed to verify your identification with the notary public. This is a routine and necessary step for your protection.
The Buyer will also be required to bring in any remaining funds necessary to complete the purchase. Those funds must be in the form of a bank wire sent directly to the Equity Title of Nevada Escrow Account.
After all required parties have signed all of the necessary documents, the escrow officer will return the signed loan documents to the lender for funding. The funding of the loan will occur after the lender has reviewed the documents and received all of the loan conditions. This process can take as little as one hour and as long as 3 days. Please check with your lender on their funding process and requirements.
Upon receipt of the lender's loan funds, and upon completion of all terms and conditions of the escrow, the escrow officer will send the necessary documents to the County Recorder's office for recordation. Once the recordation has been confirmed, the escrow officer will disburse all funds in the escrow file to the appropriate parties pursuant to the agreements in escrow, and then the escrow will be considered closed.