Nevada Revised Statutes 645.8781 – Duties of escrow agent upon notice of claim
1. Except as otherwise provided in this subsection, if:
Terms Used In Nevada Revised Statutes 645.8781
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Lien: A claim against real or personal property in satisfaction of a debt.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- person: means a natural person, any form of business or social organization and any other nongovernmental legal entity including, but not limited to, a corporation, partnership, association, trust or unincorporated organization. See Nevada Revised Statutes 0.039
- real estate: means every interest or estate in real property including but not limited to freeholds, leaseholds and interests in condominiums, town houses or planned unit developments, whether corporeal or incorporeal, and whether the real property is situated in this State or elsewhere. See Nevada Revised Statutes 645.020
(a) An escrow agent receives a notice of a claim pursuant to NRS 645.8765;
(b) A notice of claim is recorded pursuant to NRS 645.8775; or
(c) An escrow agent has actual notice of a claim specified in paragraph (b), the escrow agent shall reserve from the owner’s net proceeds an amount that is equal to the amount claimed by the real estate broker in his or her recorded claim. If the amount of the owner’s net proceeds is insufficient to satisfy the amount of the claim, the escrow agent shall reserve the entire amount of the owner’s net proceeds. In determining whether the amount of the owner’s net proceeds is insufficient to satisfy the amount of the claim, the escrow agent may consider any encumbrance, claim or lien that has priority over the claim of the real estate broker pursuant to NRS 645.8795.
2. If the escrow agent determines that the amount of the owner’s net proceeds is insufficient to satisfy the amount of the claim, the escrow agent:
(a) Shall, within 3 days after making that determination but not later than the close of escrow, notify the real estate broker of that fact in writing; and
(b) Shall not release to the owner any portion of the owner’s net proceeds unless the escrow agent receives a copy of the written agreement executed by the owner and the real estate broker authorizing the escrow agent to release those proceeds to the owner.
3. Except as otherwise provided in paragraph (b) of subsection 2 and NRS 645.8791, if an owner’s net proceeds or any portion of an owner’s net proceeds are reserved pursuant to this section, the escrow agent who reserves those proceeds shall not release the proceeds to any person until the rights of the owner and the real estate broker are determined pursuant to NRS 645.8791.
4. A reservation of an owner’s net proceeds or any portion of an owner’s net proceeds pursuant to this section does not relieve the owner of the obligation to close escrow for the commercial real estate.