[Rev. 11/21/2013 12:56:04
PM--2013]
CHAPTER 645A - ESCROW AGENCIES AND AGENTS
GENERAL PROVISIONS
NRS 645A.010 Definitions.
NRS 645A.015 Applicability.
LICENSES
NRS 645A.020 Application:
Requirements; issuance; restriction.
NRS 645A.021 Application:
Educational prerequisites; regulations.
NRS 645A.025 Payment
of child support: Submission of certain information by applicant; grounds for
denial of license; duty of Commissioner. [Effective until the date of the
repeal of 42 U.S.C. § 666, the federal law requiring each state to establish
procedures for withholding, suspending and restricting the professional,
occupational and recreational licenses for child support arrearages and for
noncompliance with certain processes relating to paternity or child support
proceedings.]
NRS 645A.025 Payment
of child support: Submission of certain information by applicant; grounds for
denial of license; duty of Commissioner. [Effective on the date of the repeal
of 42 U.S.C. § 666, the federal law requiring each state to establish
procedures for withholding, suspending and restricting the professional,
occupational and recreational licenses for child support arrearages and for
noncompliance with certain processes relating to paternity or child support
proceedings and expires by limitation 2 years after that date.]
NRS 645A.032 Contents
of license; escrow agent may associate with only one escrow agency at one time.
NRS 645A.034 Delivery
and possession of license of escrow agent; display of licenses.
NRS 645A.036 Specification
of place of business required for escrow agency; designation in license;
effect.
NRS 645A.037 Prohibition
on administering escrows in same location as or in conjunction with other
businesses; exceptions.
NRS 645A.038 License
not transferable.
NRS 645A.039 Continuing
education: Standards; regulations.
NRS 645A.040 Expiration;
renewal; fees; deposit of money received.
SURETY BONDS
NRS 645A.041 Duty
of escrow agency to deposit surety bond with Commissioner; escrow agents must
be named as principals on bond; form and amount of bond; exceptions.
NRS 645A.042 Escrow
agency may deposit substitute form of security in lieu of surety bond; amount
deposited must equal amount of bond; interest or dividends accrue to depositor.
NRS 645A.043 Cancellation
of bond: Notices required; revocation of license unless equivalent bond or
substitute form of security furnished.
NRS 645A.047 Action
on bond: Procedure; limitation of time; duties of Commissioner; preliminary
payment by surety; action for interpleader; payment.
SUPERVISION; DISCIPLINARY ACTION
NRS 645A.050 Duties
of Commissioner.
NRS 645A.060 Powers
of Commissioner: Subpoenas, oaths and examination of witnesses; penalty.
NRS 645A.065 Fees
for supervision, investigation and examination of persons; standards for
supervision of escrow agents.
NRS 645A.067 Payment
of assessment and cooperation in audits and examinations.
NRS 645A.070 Records
of transactions in escrow: Maintenance; filing.
NRS 645A.080 Records
of Commissioner: General provisions governing public inspection and
confidentiality.
NRS 645A.082 Records
of Commissioner: Certain records relating to investigation deemed confidential;
certain records relating to disciplinary action deemed public records.
NRS 645A.085 Change
in ownership of voting stock of escrow agency.
NRS 645A.086 Duty
of Commissioner to take disciplinary action for certain violations.
NRS 645A.090 Grounds
for refusal to issue license or for disciplinary action; orders imposing
discipline deemed public records.
NRS 645A.095 Suspension
of license for failure to pay child support or comply with certain subpoenas or
warrants; reinstatement of license. [Effective until 2 years after the date of
the repeal of 42 U.S.C. § 666, the federal law requiring each state to
establish procedures for withholding, suspending and restricting the
professional, occupational and recreational licenses for child support
arrearages and for noncompliance with certain processes relating to paternity
or child support proceedings.]
NRS 645A.097 Disciplinary
proceedings, fines and penalties not affected by expiration, revocation or
voluntary surrender of license.
NRS 645A.100 Notice
of refusal to issue license or of disciplinary action; hearing; limitation on
time to apply for hearing.
NRS 645A.110 Investigation
by Commissioner; powers of Commissioner; injunctive relief; enforcement of
subpoenas.
NRS 645A.130 Procedures
following decision on appeal.
NRS 645A.140 Powers
of Commissioner when agency’s affairs in unsafe condition.
NRS 645A.150 Receivership.
MONEY DEPOSITED IN ESCROW
General Provisions
NRS 645A.160 Money
deposited in escrow must be deposited in escrow or trust account.
NRS 645A.170 Limitations
on execution or attachment of money deposited in escrow; commingling
prohibited.
NRS 645A.171 Limitations
on disbursements of money deposited in escrow account.
Escrows for the Sale of Real Property
NRS 645A.173 Duty
to record certain information concerning real estate brokers and salespersons,
mortgage brokers and mortgage bankers.
NRS 645A.175 Duty
to execute documents necessary to release money deposited in escrow; exception
for good faith disputes; recovery of damages for failure to execute; award of
attorney’s fees.
NRS 645A.177 Action
to recover money deposited in escrow; discharge from further responsibility for
holder of escrow; right of holder to bring action for interpleader.
MISCELLANEOUS PROVISIONS
NRS 645A.193 Attorney
General to represent Division.
NRS 645A.195 Escrow
agency that is not natural person to designate natural person as qualified
employee.
NRS 645A.196 Termination
of employment of escrow agent: Duties of escrow agency; prohibited actions.
NRS 645A.199 Proof
of licensure required in action for collection of compensation.
NRS 645A.200 Statutory
and common-law rights unaffected.
NRS 645A.201 Exercise
of jurisdiction over party to civil action; service of summons to confer
jurisdiction.
UNLAWFUL ACTS; PENALTIES; REMEDIES
NRS 645A.210 Unlawful
to engage in escrow business without license.
NRS 645A.220 Transactions
by foreign corporations.
NRS 645A.221 Contracts
for escrow transaction voidable for certain violations; administrative fines.
NRS 645A.222 Civil
action authorized for certain violations.
NRS 645A.224 Employee
of Division prohibited from interest in escrow agency.
NRS 645A.225 Charge
for statement of interest payments prohibited.
NRS 645A.230 Penalties
for violations.
NRS 645A.235 Restitution.
_________
GENERAL PROVISIONS
NRS 645A.010 Definitions. As
used in this chapter, unless the context otherwise requires:
1. “Commissioner” means the Commissioner
of Mortgage Lending.
2. “Construction control” has the meaning
ascribed to it in NRS 627.050.
3. “Division” means the Division of
Mortgage Lending of the Department of Business and Industry.
4. “Escrow” means any transaction wherein
one person, for the purpose of effecting the sale, transfer, encumbering or
leasing of real or personal property to another person, delivers any written
instrument, money, evidence of title to real or personal property, or other
thing of value to a third person until the happening of a specified event or
the performance of a prescribed condition, when it is then to be delivered by
such third person to a grantee, grantor, promisee, promisor, obligee, obligor,
bailee, bailor or any agent or employee of any of the latter. The term includes
the collection of payments and the performance of related services by a third
person in connection with a loan secured by a lien on real property and the
performance of the services of a construction control.
5. “Escrow agency” means:
(a) Any person who employs one or more escrow
agents; or
(b) An escrow agent who administers escrows on
his or her own behalf.
6. “Escrow agent” means any person engaged
in the business of administering escrows for compensation.
(Added to NRS by 1973, 1305; A 1985, 536, 1809; 1991, 1847; 1993, 1891; 2003, 3539; 2011, 3596)
NRS 645A.015 Applicability. The
provisions of this chapter do not apply to:
1. Any person:
(a) Doing business under the laws of this State
or the United States relating to banks, mutual savings banks, trust companies,
savings and loan associations, common and consumer finance companies or
industrial loan companies; or
(b) Licensed pursuant to chapter 692A of NRS.
2. An attorney at law rendering services
in the performance of his or her duties as attorney at law, except an attorney
actively engaged in conducting an escrow agency.
3. Any firm or corporation which lends
money on real or personal property and is subject to licensing, supervision or
auditing by an agency of the United States or of this State.
4. Any person doing any act under order of
any court.
(Added to NRS by 1973, 1312; A 1985, 1818; 1987, 1314)
LICENSES
NRS 645A.020 Application: Requirements; issuance; restriction.
1. A person who wishes to be licensed as
an escrow agent or agency must file a written application in the Office of the
Commissioner.
2. The application must:
(a) Be verified.
(b) Be accompanied by the appropriate fee
prescribed in NRS 645A.040.
(c) State the location of the applicant’s
principal office and branch offices in the State and residence address.
(d) State the name under which the applicant will
conduct business.
(e) List the names, residence and business addresses
of all persons having an interest in the business as principals, partners,
officers, trustees or directors, specifying the capacity and title of each.
(f) Indicate the general plan and character of
the business.
(g) State the length of time the applicant has
been engaged in the escrow business.
(h) Require a financial statement of the
applicant.
(i) Require such other information as the
Commissioner determines necessary.
(j) If for an escrow agency, designate a natural
person to receive service of process in this State for the agency.
(k) Include a complete set of the fingerprints of
the applicant or, if the applicant is not a natural person, a complete set of
the fingerprints of each person who will have an interest in the escrow agency
as a principal, partner, officer, director or trustee, and written permission
authorizing the Division to forward the fingerprints to the Central Repository
for Nevada Records of Criminal History for submission to the Federal Bureau of
Investigation for its report.
(l) Include all information required to complete
the application.
3. If the Commissioner determines, after
investigation, that the experience, character, financial condition, business
reputation and general fitness of the applicant are such as to command the
confidence of the public and to warrant the belief that the business conducted
will protect and safeguard the public, the Commissioner shall issue a license
to the applicant as an escrow agent or agency.
4. The Commissioner may waive the
investigation required by subsection 3 if the applicant submits with the
application satisfactory proof that the applicant, in good standing, currently
holds a license, or held a license, within 1 year before the date the applicant
submits his or her application, which was issued pursuant to the provisions of NRS 692A.103.
5. An escrow agent or agency shall
immediately notify the Division of any material change in the information
contained in the application.
6. A person may not be licensed as an
escrow agent or agency or be a principal, partner, officer, director or trustee
of an escrow agency if the person is the holder of an active license issued
pursuant to chapter 645 of NRS.
7. If the Commissioner finds that
additional information is required to consider the application, the
Commissioner shall send a letter to the applicant which specifies the
additional requirements that the applicant must satisfy within 30 days after
receiving the letter to obtain a license. If the applicant does not satisfy all
additional requirements set forth in the letter within 30 days after receipt of
the letter, the application will be deemed to have been denied, and the
applicant must reapply to obtain a license. The Commissioner may, for good
cause, extend the 30-day period prescribed in this subsection.
(Added to NRS by 1973, 1306; A 1985, 1810; 1987, 117; 1991, 1848; 1995, 1003; 1997, 2169; 2005, 2779, 2807; 2011, 3596)
NRS 645A.021 Application: Educational prerequisites; regulations.
1. In addition to any other requirement,
an applicant for an original license as an escrow agent or agency must furnish
proof satisfactory to the Commissioner of the successful completion of a course
of instruction in the principles, practices, procedures, law and ethics of
escrows, which course may be an extension or correspondence course offered by
the Nevada System of Higher Education, by any other accredited college or
university or by any other college or school approved by the Commissioner.
2. An applicant for a license as an escrow
agent or agency pursuant to NRS 645A.020 must meet
the educational prerequisites required pursuant to this section not later than
the date on which his or her application is received by the Office of the
Commissioner.
3. The Commissioner shall adopt
regulations setting forth standards for the educational prerequisites required
pursuant to this section. The regulations must address standards for instructors,
the scope and content of the instruction, required hours of instruction and
such other criteria as the Commissioner considers necessary.
(Added to NRS by 2009, 1552)
NRS 645A.025 Payment of child support: Submission of certain information by
applicant; grounds for denial of license; duty of Commissioner. [Effective
until the date of the repeal of 42 U.S.C. § 666, the federal law requiring each
state to establish procedures for withholding, suspending and restricting the
professional, occupational and recreational licenses for child support
arrearages and for noncompliance with certain processes relating to paternity
or child support proceedings.]
1. In addition to any other requirements
set forth in this chapter:
(a) A natural person who applies for the issuance
of a license as an escrow agent or escrow agency shall include the social
security number of the applicant in the application submitted to the
Commissioner.
(b) A natural person who applies for the issuance
or renewal of a license as an escrow agent or escrow agency shall submit to the
Commissioner the statement prescribed by the Division of Welfare and Supportive
Services of the Department of Health and Human Services pursuant to NRS 425.520. The statement must be
completed and signed by the applicant.
2. The Commissioner shall include the
statement required pursuant to subsection 1 in:
(a) The application or any other forms that must
be submitted for the issuance or renewal of the license; or
(b) A separate form prescribed by the
Commissioner.
3. A license as an escrow agent or escrow
agency may not be issued or renewed by the Commissioner if the applicant is a
natural person who:
(a) Fails to submit the statement required
pursuant to subsection 1; or
(b) Indicates on the statement submitted pursuant
to subsection 1 that the applicant is subject to a court order for the support
of a child and is not in compliance with the order or a plan approved by the
district attorney or other public agency enforcing the order for the repayment
of the amount owed pursuant to the order.
4. If an applicant indicates on the
statement submitted pursuant to subsection 1 that the applicant is subject to a
court order for the support of a child and is not in compliance with the order
or a plan approved by the district attorney or other public agency enforcing
the order for the repayment of the amount owed pursuant to the order, the
Commissioner shall advise the applicant to contact the district attorney or
other public agency enforcing the order to determine the actions that the
applicant may take to satisfy the arrearage.
(Added to NRS by 1997, 2168; A 2005, 2779, 2807)
NRS 645A.025 Payment of child support:
Submission of certain information by applicant; grounds for denial of license;
duty of Commissioner. [Effective on the date of the repeal of 42 U.S.C. § 666,
the federal law requiring each state to establish procedures for withholding,
suspending and restricting the professional, occupational and recreational
licenses for child support arrearages and for noncompliance with certain
processes relating to paternity or child support proceedings and expires by
limitation 2 years after that date.]
1. In addition to any other requirements
set forth in this chapter, a natural person who applies for the issuance or
renewal of a license as an escrow agent or escrow agency shall submit to the
Commissioner the statement prescribed by the Division of Welfare and Supportive
Services of the Department of Health and Human Services pursuant to NRS 425.520. The statement must be
completed and signed by the applicant.
2. The Commissioner shall include the
statement required pursuant to subsection 1 in:
(a) The application or any other forms that must
be submitted for the issuance or renewal of the license; or
(b) A separate form prescribed by the
Commissioner.
3. A license as an escrow agent or escrow
agency may not be issued or renewed by the Commissioner if the applicant is a
natural person who:
(a) Fails to submit the statement required
pursuant to subsection 1; or
(b) Indicates on the statement submitted pursuant
to subsection 1 that the applicant is subject to a court order for the support
of a child and is not in compliance with the order or a plan approved by the
district attorney or other public agency enforcing the order for the repayment
of the amount owed pursuant to the order.
4. If an applicant indicates on the
statement submitted pursuant to subsection 1 that the applicant is subject to a
court order for the support of a child and is not in compliance with the order
or a plan approved by the district attorney or other public agency enforcing
the order for the repayment of the amount owed pursuant to the order, the
Commissioner shall advise the applicant to contact the district attorney or
other public agency enforcing the order to determine the actions that the
applicant may take to satisfy the arrearage.
(Added to NRS by 1997, 2168; A 2005, 2779, 2780, 2807,
effective on the date of the repeal of 42 U.S.C. § 666, the federal law
requiring each state to establish procedures for withholding, suspending and
restricting the professional, occupational and recreational licenses for child
support arrearages and for noncompliance with certain processes relating to
paternity or child support proceedings)
NRS 645A.032 Contents of license; escrow agent may associate with only one
escrow agency at one time.
1. The Division shall issue to each
licensee a license which:
(a) Shows the name and address of the licensee,
and in the case of an escrow agent, the name of the escrow agency with whom the
escrow agent will be associated.
(b) Has imprinted thereon the seal of the
Division.
(c) Contains any additional matter prescribed by
the Division.
2. No escrow agent may be associated with
or employed by more than one escrow agency at the same time.
(Added to NRS by 1985, 1807)
NRS 645A.034 Delivery and possession of license of escrow agent; display of
licenses.
1. The license of each escrow agent must
be delivered or mailed to the escrow agency with whom the licensee is
associated and kept in the custody and control of the escrow agency.
2. The license of each escrow agency and
of each escrow agent associated with that agency must be displayed
conspicuously in the agency’s place of business. If an escrow agency maintains
more than one place of business within the State, an additional license must be
issued to each branch office so maintained, and the additional license must be
displayed conspicuously in each branch office.
(Added to NRS by 1985, 1807)
NRS 645A.036 Specification of place of business required for escrow agency;
designation in license; effect.
1. Every escrow agency shall maintain a
definite place of business within the State, which must be a room or rooms used
for the transaction of escrows, or such business and any allied businesses, and
which must serve as the office for the transaction of business pursuant to the
authority granted in the license.
2. The place of business must be specified
in the application for the license and so designated on the license.
3. A license does not authorize the
licensee to transact business from any office other than that designated in the
license.
(Added to NRS by 1985, 1807)
NRS 645A.037 Prohibition on administering escrows in same location as or in
conjunction with other businesses; exceptions.
1. Except as otherwise provided in
subsection 2, a licensee may not conduct the business of administering escrows
for compensation within any office, suite, room or place of business in which
any other business is solicited or engaged in, except a notary public, or in
association or conjunction with any other business, unless authority to do so
is given by the Commissioner.
2. A licensee may conduct the business of
administering escrows pursuant to this chapter in the same office or place of
business as a mortgage banker if:
(a) The licensee and the mortgage banker:
(1) Operate as separate legal entities;
(2) Maintain separate accounts, books and
records;
(3) Are subsidiaries of the same parent
corporation; and
(4) Maintain separate licenses; and
(b) The mortgage banker is licensed by this state
pursuant to chapter 645E of NRS and does
not conduct any business as a mortgage broker licensed pursuant to chapter 645B of NRS in the office or place of
business.
(Added to NRS by 1993, 503; A 1999, 3764; 2003, 3540)
NRS 645A.038 License not transferable. A
license issued pursuant to the provisions of this chapter does not give
authority to perform any act specified in this chapter to any person other than
the person to whom the license is issued, or from any place of business other
than that specified therein.
(Added to NRS by 1985, 1807)
NRS 645A.039 Continuing education: Standards; regulations.
1. The Commissioner shall adopt
regulations that prescribe standards for the continuing education of persons
licensed pursuant to this chapter.
2. The standards adopted pursuant to
subsection 1 must:
(a) Permit alternative subject material
appropriate for specialized areas of practice and alternative sources of
programs to ensure availability throughout the State and throughout the year;
(b) Set forth procedures pursuant to which the
Commissioner may qualify providers to offer courses of continuing education,
including, without limitation, generally accredited educational institutions,
private vocational schools, educational programs and seminars of professional
societies and organizations and other organized educational programs on
technical subjects;
(c) Set forth procedures pursuant to which the
Commissioner may qualify those continuing education courses that the
Commissioner determines address the appropriate subject matter; and
(d) Set forth required hours of instruction and
such other criteria as the Commissioner considers necessary.
3. Subject to the provisions of this
section, the Commissioner has exclusive authority to determine which providers
and courses may qualify for the purposes of continuing education under this
chapter.
(Added to NRS by 2009, 1552)
NRS 645A.040 Expiration; renewal; fees; deposit of money received.
1. Every license issued pursuant to the
provisions of this chapter expires on July 1 of each year if it is not renewed.
A license may be renewed by filing an application for renewal, paying the
annual fee for the succeeding year and submitting all information required to
complete the renewal.
2. The fees for the issuance or renewal of
a license for an escrow agency are:
(a) For filing an application for an initial
license, $500 for the principal office and $100 for each branch office.
(b) If the license is approved for issuance, $200
for the principal office and $100 for each branch office. The fee must be paid
before issuance of the license.
(c) For filing an application for renewal, $200
for the principal office and $100 for each branch office.
3. The fees for the issuance or renewal of
a license for an escrow agent are:
(a) For filing an application for an initial
license or for the renewal of a license, $100.
(b) If a license is approved for issuance or
renewal, $25. The fee must be paid before the issuance or renewal of the
license.
4. If a licensee fails to pay the fee or
submit all required information for the annual renewal of his or her license
before its expiration, the license may be renewed only upon the payment of a
fee one and one-half times the amount otherwise required for renewal. A license
may be renewed pursuant to this subsection only if all the fees are paid and
all required information is submitted within 2 months after the date on which
the license expired.
5. In addition to the other fees set forth
in this section, each applicant or licensee shall pay:
(a) For filing an application for a duplicate
copy of any license, upon satisfactory showing of its loss, $10.
(b) For filing any change of information
contained in the application, $10.
(c) For each change of association with an escrow
agency, $25.
6. Except as otherwise provided in this
chapter, all fees received pursuant to this chapter must be deposited in the
Account for Mortgage Lending created by NRS
645F.270.
(Added to NRS by 1973, 1307; A 1985, 1811; 1993, 504; 1995, 1005; 1997, 2170; 2003, 3228, 3540; 2003,
20th Special Session, 265; 2005, 2781, 2807, 2817; 2011, 3597)
SURETY BONDS
NRS 645A.041 Duty of escrow agency to deposit surety bond with Commissioner;
escrow agents must be named as principals on bond; form and amount of bond;
exceptions.
1. Except as otherwise provided in NRS 645A.042, as a condition to doing business in
this State, each escrow agency shall deposit with the Commissioner and keep in
full force and effect a corporate surety bond payable to the State of Nevada,
in the amount set forth in subsection 4, which is executed by a corporate
surety satisfactory to the Commissioner and which names as principals the
escrow agency and all escrow agents employed by or associated with the escrow
agency.
2. At the time of filing an application
for a license as an escrow agent, the applicant shall file with the
Commissioner proof that the applicant is named as a principal on the corporate
surety bond deposited with the Commissioner by the escrow agency with whom he
or she is associated or employed.
3. The bond must be in substantially the
following form:
Know All Persons by These
Presents, that ........................, as principal, and
........................, as surety, are held and firmly bound unto the State
of Nevada for the use and benefit of any person who suffers damages because of
a violation of any of the provisions of chapter 645A of
NRS, in the sum of ............, lawful money of the United States, to be paid
to the State of Nevada for such use and benefit, for which payment well and
truly to be made, and that we bind ourselves, our heirs, executors,
administrators, successors and assigns, jointly and severally, firmly by these
presents.
The condition of that
obligation is such that: Whereas, the principal has been issued a license as an
escrow agency or escrow agent by the Commissioner of Mortgage Lending of the
Department of Business and Industry of the State of Nevada and is required to
furnish a bond, which is conditioned as set forth in this bond:
Now, therefore, if the
principal, his or her agents and employees, strictly, honestly and faithfully
comply with the provisions of chapter 645A of NRS, and
pay all damages suffered by any person because of a violation of any of the
provisions of chapter 645A of NRS, or by reason of any
fraud, dishonesty, misrepresentation or concealment of material facts growing
out of any transaction governed by the provisions of chapter
645A of NRS, then this obligation is void; otherwise it remains in full
force.
This bond becomes effective
on the ..........(day) of ................(month) of ......(year), and remains
in force until the surety is released from liability by the Commissioner of
Mortgage Lending or until this bond is cancelled by the surety. The surety may
cancel this bond and be relieved of further liability hereunder by giving 60
days’ written notice to the principal and to the Commissioner of Mortgage
Lending of the Department of Business and Industry of the State of Nevada.
In Witness Whereof, the seal
and signature of the principal hereto is affixed, and the corporate seal and
the name of the surety hereto is affixed and attested by its authorized
officers at ........................, Nevada, this .............(day) of
................(month) of ...….(year).
............................................................................. (Seal)
Principal
............................................................................. (Seal)
Surety
By..........................................................
Attorney-in-fact
...............................................................
Nevada
Licensed Insurance Agent
4. Each escrow agency shall deposit a
corporate surety bond that complies with the provisions of this section or a
substitute form of security that complies with the provisions of NRS 645A.042 in the following amount based upon the
average monthly balance of the trust account or escrow account maintained by
the escrow agency pursuant to NRS 645A.160:
AVERAGE MONTHLY BALANCE AMOUNT
OF BOND OR
SECURITY
REQUIRED
$50,000 or less................................................................................................ $20,000
More than $50,000 but not more than
$250,000....................................... 50,000
More than $250,000 but not more than
$500,000.................................. 100,000
More than $500,000 but not more than
$750,000.................................. 150,000
More than $750,000 but not more than
$1,000,000............................... 200,000
More than $1,000,000................................................................................... 250,000
The Commissioner shall determine the appropriate amount of
the surety bond or substitute form of security that must be deposited initially
by the escrow agency based upon the expected average monthly balance of the
trust account or escrow account maintained by the escrow agency pursuant to NRS 645A.160. After the initial deposit, the
Commissioner shall, on a semiannual basis, determine the appropriate amount of
the surety bond or substitute form of security that must be deposited by the
escrow agency based upon the average monthly balance of the trust account or
escrow account maintained by the escrow agency pursuant to NRS 645A.160.
5. A bond used to satisfy the requirements
of NRS 627.180 or a substitute for that
bond which satisfies the requirements of NRS
627.183 may be used to satisfy the requirements of this section if:
(a) The amount required by NRS 627.180 for a bond is not less than
the amount required by this section for a bond; or
(b) The amount required by NRS 627.180 for a bond is less than the
amount required by this section for a bond, and the escrow agency deposits an
additional bond in an amount not less than the difference between the amount
required by NRS 627.180 and the amount
required by this section.
(Added to NRS by 1973, 1306; A 1985, 1810; 1991, 1849; 1993, 503, 1891; 1995, 527, 1004; 1999, 3762; 2001, 282; 2011, 3598)
NRS 645A.042 Escrow agency may deposit substitute form of security in lieu of
surety bond; amount deposited must equal amount of bond; interest or dividends
accrue to depositor.
1. As a substitute for the surety bond
required by NRS 645A.041, an escrow agency may, in
accordance with the provisions of this section, deposit with any bank or trust
company authorized to do business in this state, in a form approved by the
Commissioner:
(a) An obligation of a bank, savings and loan
association, thrift company or credit union licensed to do business in this
state;
(b) Bills, bonds, notes, debentures or other
obligations of the United States or any agency or instrumentality thereof, or
guaranteed by the United States; or
(c) Any obligation of this state or any city,
county, town, township, school district or other instrumentality of this state,
or guaranteed by this state.
2. The obligations of a bank, savings and
loan association, thrift company or credit union must be held to secure the
same obligation as would the surety bond. With the approval of the
Commissioner, the depositor may substitute other suitable obligations for those
deposited which must be assigned to the State of Nevada and are negotiable only
upon approval by the Commissioner.
3. Any interest or dividends earned on the
deposit accrue to the account of the depositor.
4. The deposit must be in an amount at
least equal to the required surety bond and must state that the amount may not
be withdrawn except by direct and sole order of the Commissioner. The value of
any item deposited pursuant to this section must be based upon principal amount
or market value, whichever is lower.
(Added to NRS by 1995, 1002; A 1999, 3764)
NRS 645A.043 Cancellation of bond: Notices required; revocation of license
unless equivalent bond or substitute form of security furnished.
1. The surety may cancel a bond upon
giving 60 days’ notice to the Commissioner by certified mail. Upon receipt by the
Commissioner of such a notice, the Commissioner immediately shall notify the
licensee who is the principal on the bond of the effective date of cancellation
of the bond, and that his or her license will be revoked unless the licensee
furnishes an equivalent bond or a substitute form of security authorized by NRS 645A.042 before the effective date of the
cancellation. The notice must be sent to the licensee by certified mail to his
or her last address of record filed in the office of the Division.
2. If the licensee does not comply with
the requirements set out in the notice from the Commissioner, the license must
be revoked on the date the bond is cancelled.
(Added to NRS by 1985, 1808; A 1991, 1850; 1995, 1006)
NRS 645A.047 Action on bond: Procedure; limitation of time; duties of
Commissioner; preliminary payment by surety; action for interpleader; payment.
1. Any person claiming against a bond may
bring an action in a court of competent jurisdiction on the bond for damages to
the extent covered by the bond. A person who brings an action on a bond shall
notify the Commissioner in writing upon filing the action. An action may not be
commenced after the expiration of 3 years following the commission of the act
on which the action is based.
2. Upon receiving a request from a person
for whose benefit a bond is required, the Commissioner shall notify the person:
(a) That a bond is in effect and the amount of
the bond; and
(b) If there is an action against the bond, the
title, court and case number of the action and the amount sought by the
plaintiff.
3. If a surety wishes to make payment
without awaiting action by a court, the amount of the bond must be reduced to
the extent of any payment made by the surety in good faith under the bond. Any payment
must be based on written claims received by the surety before any action is
taken by a court.
4. The surety may bring an action for
interpleader against all claimants upon the bond. If it does so, it shall
publish notice of the action at least once each week for 2 weeks in every issue
of a newspaper of general circulation in the county where the escrow agent or
agency has its principal place of business. The surety may deduct its costs of
the action, including attorney’s fees and publication, from its liability under
the bond.
5. Claims against a bond have equal
priority, and if the bond is insufficient to pay all claims in full, they must
be paid on a pro rata basis. Partial payment of claims is not full payment, and
any claimant may bring an action against the escrow agent or agency for the
unpaid balance.
(Added to NRS by 1985, 1809; A 1991, 1850)
SUPERVISION; DISCIPLINARY ACTION
NRS 645A.050 Duties of Commissioner.
1. Subject to the administrative control
of the Director of the Department of Business and Industry, the Commissioner
shall exercise general supervision and control over escrow agents and agencies
doing business in the State of Nevada.
2. In addition to the other duties imposed
upon him or her by law, the Commissioner shall:
(a) Adopt such regulations as may be necessary
for making this chapter effective.
(b) Conduct or cause to be conducted each year an
examination of each escrow agency licensed pursuant to this chapter.
(c) Conduct such investigations as may be
necessary to determine whether any person has violated any provision of this
chapter.
(d) Conduct such examinations, investigations and
hearings, in addition to those specifically provided for by law, as may be
necessary and proper for the efficient administration of the laws of this State
relating to escrow.
(e) Classify as confidential the financial
statements of an escrow agency and those records and information obtained by
the Division which:
(1) Are obtained from a governmental
agency upon the express condition that they remain confidential.
(2) Except as otherwise provided in NRS 645A.082, consist of information compiled by the
Division in the investigation of possible violations of this chapter.
Ê This
paragraph does not limit examination by the Legislative Auditor or any other
person pursuant to a court order.
3. An escrow agency may engage a certified
public accountant to perform such an examination in lieu of the Division. In
such a case, the examination must be equivalent to the type of examination made
by the Division and the expense must be borne by the escrow agency being examined.
4. The Commissioner shall determine
whether an examination performed by an accountant pursuant to subsection 3 is
equivalent to an examination conducted by the Division. The Commissioner may
examine any area of the operation of an escrow agency if the Commissioner
determines that the examination of that area is not equivalent to an
examination conducted by the Division.
(Added to NRS by 1973, 1308; A 1985, 1812; 1991, 1850; 1993, 1892; 2003, 3466)
NRS 645A.060 Powers of Commissioner: Subpoenas, oaths and examination of
witnesses; penalty.
1. In the conduct of any examination,
investigation or hearing, the Commissioner may:
(a) Compel the attendance of any person by
subpoena.
(b) Compel the production of any document by subpoena.
(c) Administer oaths.
(d) Examine any person under oath concerning the
business and conduct of affairs of any person subject to the provisions of this
chapter, and in connection therewith require the production of any books,
records or papers relevant to the inquiry.
2. Every person subpoenaed pursuant to the
provisions of this section who willfully refuses or willfully neglects to
appear at the time and place named in the subpoena or to produce books, records
or papers required by the Commissioner, or who refuses to be sworn or answer as
a witness, is guilty of a misdemeanor.
(Added to NRS by 1973, 1308; A 1991, 1851; 2009, 1553)
NRS 645A.065 Fees for supervision, investigation and examination of persons;
standards for supervision of escrow agents.
1. The Commissioner shall establish by
regulation the fees to be paid by all persons subject to the provisions of this
chapter for the supervision, investigation and examination of such persons by
the Commissioner or the Division.
2. In establishing the fees, the
Commissioner shall consider:
(a) The complexity of the various investigations
and examinations to which the fees apply;
(b) The skill required to conduct such
investigations and examinations;
(c) The expenses associated with conducting such
investigations and examinations and preparing reports; and
(d) Any other factors the Commissioner deems
relevant.
3. The Commissioner shall adopt
regulations prescribing the standards for determining whether an escrow agency
has maintained adequate supervision of an escrow agent pursuant to the
provisions of this chapter.
(Added to NRS by 1991, 1847; A 2011, 3600)
NRS 645A.067 Payment of assessment and cooperation in audits and
examinations. Each escrow agency
shall pay the assessment levied by the Commissioner and cooperate fully with
the audits and examinations performed pursuant to NRS 645F.180.
(Added to NRS by 1993, 503; A 2003, 3542)
NRS 645A.070 Records of transactions in escrow: Maintenance; filing.
1. All escrow agents and agencies shall
maintain, for a period of not less than 6 years, complete and suitable records
of all escrow transactions made by them. A record of a transaction must be
maintained in the county in which the property to which it relates is located
if the agent or agency maintains a place of business in that county. If a place
of business is not maintained in that county, the record must be maintained in
the agent’s or agency’s principal place of business.
2. Every escrow agent and agency shall, at
the times required by the Commissioner, file in the Office of the Commissioner
a correct statement, in the form and containing the data the Commissioner may
require, of the business of the agent or agency.
(Added to NRS by 1973, 1307; A 1985, 1813; 1989, 584; 1991, 1851; 1993, 505)
NRS 645A.080 Records of Commissioner: General provisions governing public
inspection and confidentiality. Except
as otherwise provided by law, all papers, documents, reports and other written
instruments filed with the Commissioner pursuant to this chapter are open to
public inspection, except that the Commissioner may withhold from public
inspection for such time as the Commissioner considers necessary any information
which in his or her judgment the public welfare or the welfare of any escrow
agent or agency requires to be so withheld.
(Added to NRS by 1973, 1312; A 1985, 1813; 1991, 1852)
NRS 645A.082 Records of Commissioner: Certain records relating to
investigation deemed confidential; certain records relating to disciplinary
action deemed public records.
1. Except as otherwise provided in this
section and NRS 239.0115, a complaint
filed with the Commissioner, all documents and other information filed with the
complaint and all documents and other information compiled as a result of the
investigation conducted to determine whether to initiate disciplinary action
are confidential.
2. The complaint or other document filed
by the Commissioner to initiate disciplinary action and all documents and
information considered by the Commissioner when determining whether to impose
discipline are public records.
(Added to NRS by 2003, 3466; A 2007, 2147)
NRS 645A.085 Change in ownership of voting stock of escrow agency.
1. An escrow agency shall immediately
notify the Commissioner of any change in the ownership of 5 percent or more of
its outstanding voting stock.
2. An application must be submitted to the
Commissioner, pursuant to NRS 645A.020, by a
person who acquires:
(a) At least 25 percent of the outstanding voting
stock of an escrow agency; or
(b) Any outstanding voting stock of an escrow
agency if the change will result in a change in the control of the escrow
agency.
3. Except as otherwise provided in
subsection 5, the Commissioner shall conduct an investigation to determine
whether the applicant has the experience, character, financial condition,
business reputation and general fitness to command the confidence of the public
and to warrant the belief that the business conducted will protect and
safeguard the public. If the Commissioner denies the application, the
Commissioner may forbid the applicant from participating in the business of the
escrow agency.
4. The escrow agency with which the
applicant is affiliated shall pay the cost of the investigation as the
Commissioner requires. All money received by the Commissioner pursuant to this
section must be deposited in the Account for Mortgage Lending created by NRS 645F.270.
5. An escrow agency may submit a written
request to the Commissioner to waive an investigation pursuant to subsection 3.
The Commissioner may grant a waiver if the applicant has undergone a similar
investigation by a state or federal agency in connection with the licensing of
or his or her employment with a financial institution.
(Added to NRS by 1993, 502; A 2003, 3542; 2011, 3600)
NRS 645A.086 Duty of Commissioner to take disciplinary action for certain
violations. If a person offers or
provides any of the services of an escrow agent or escrow agency or otherwise
engages in, carries on or holds himself or herself out as engaging in or
carrying on the business of an escrow agent or escrow agency and, at the time:
1. The person was required to have a
license pursuant to this chapter and the person did not have such a license; or
2. The person’s license was suspended or
revoked pursuant to this chapter,
Ê the
Commissioner shall impose upon the person an administrative fine of not more
than $25,000 for each violation and, if the person has a license, the
Commissioner may suspend or revoke it.
(Added to NRS by 2011, 3595)
NRS 645A.090 Grounds for refusal to issue license or for disciplinary action;
orders imposing discipline deemed public records.
1. The Commissioner may refuse to license
any escrow agent or agency or may suspend, revoke or place conditions upon any
license or impose a fine on any person of not more than $25,000 for each
violation by entering an order to that effect, with the Commissioner’s findings
in respect thereto, if upon a hearing, it is determined that the applicant,
licensee or person:
(a) In the case of an escrow agency, is
insolvent;
(b) Has violated any provision of this chapter,
any regulation adopted pursuant thereto or an order of the Commissioner or has
aided and abetted another to do so;
(c) In the case of an escrow agency, is in such a
financial condition that he or she cannot continue in business with safety to
his or her customers;
(d) Has committed fraud in connection with any
transaction governed by this chapter;
(e) Has intentionally or knowingly made any
misrepresentation or false statement to, or concealed any essential or material
fact from, any principal or designated agent of a principal in the course of
the escrow business;
(f) Has intentionally or knowingly made or caused
to be made to the Commissioner any false representation of a material fact or
has suppressed or withheld from the Commissioner any information which the
applicant, licensee or person possesses;
(g) Has failed without reasonable cause to
furnish to the parties of an escrow their respective statements of the
settlement within a reasonable time after the close of escrow;
(h) Has failed without reasonable cause to
deliver, within a reasonable time after the close of escrow, to the respective
parties of an escrow transaction any money, documents or other properties held
in escrow in violation of the provisions of the escrow instructions;
(i) Has refused to permit an examination by the
Commissioner of his or her books and affairs or has refused or failed, within a
reasonable time, to furnish any information or make any report that may be
required by the Commissioner pursuant to the provisions of this chapter;
(j) Has been convicted of, entered or agreed to
enter a plea of guilty or nolo contendere to, a felony relating to the practice
of escrow agents or agencies or any felony or misdemeanor of which an essential
element is an act of fraud, dishonesty or a breach of trust, moral turpitude or
money laundering;
(k) In the case of an escrow agency, has failed
to maintain complete and accurate records of all transactions within the last 6
years;
(l) Has commingled the money of others with his
or her own or converted the money of others to his or her own use;
(m) Has failed, before the close of escrow, to
obtain written escrow instructions concerning any essential or material fact or
intentionally failed to follow the written instructions which have been agreed
upon by the parties and accepted by the holder of the escrow;
(n) Has failed to disclose in writing that he or
she is acting in the dual capacity of escrow agent or agency and undisclosed
principal in any transaction;
(o) In the case of an escrow agency, has:
(1) Failed to maintain adequate
supervision of an escrow agent; or
(2) Instructed an escrow agent to commit
an act which would be cause for the revocation of the escrow agent’s license
and the escrow agent committed the act. An escrow agent is not subject to
disciplinary action by the Commissioner for committing such an act under
instruction by the escrow agency;
(p) In the case of an escrow agency, if the
applicant or licensee is a partnership, corporation or unincorporated
association, has a member of the partnership or an officer or director of the
corporation or unincorporated association who has been convicted of, entered or
agreed to enter a plea of guilty or nolo contendere to, a felony in a domestic,
foreign or military court relating to the practice of escrow agents or
agencies, or any felony or misdemeanor of which an essential element is an act
of fraud, dishonesty or a breach of trust, moral turpitude or money laundering;
or
(q) In the case of a person who performs the
services of a construction control, has failed to comply with the provisions of
chapter 627 of NRS.
2. It is sufficient cause for the
imposition of a fine or the refusal, suspension or revocation of, or the
placement of conditions upon, the license of a partnership, corporation or any
other association that any member of the partnership or any officer or director
of the corporation or association has been guilty of any act or omission which
would be cause for such action had the applicant or licensee been a natural
person.
3. The Commissioner may suspend any
license for not more than 30 days, pending a hearing, if upon examination into
the affairs of the licensee it is determined that any of the grounds enumerated
in subsection 1 or 2 exist.
4. The Commissioner may refuse to issue a
license to any person who, within 10 years before the date of applying for a
current license, has had suspended or revoked a license issued pursuant to this
chapter or a comparable license issued by any other state, district or
territory of the United States or any foreign country.
5. An order that imposes discipline and
the findings of fact and conclusions of law supporting that order are public
records.
(Added to NRS by 1973, 1308; A 1985, 1813; 1991, 1852; 1993, 505; 2003, 2719, 3467; 2009, 742; 2011, 3600)
NRS 645A.095 Suspension of license for failure to pay child support or comply
with certain subpoenas or warrants; reinstatement of license. [Effective until
2 years after the date of the repeal of 42 U.S.C. § 666, the federal law
requiring each state to establish procedures for withholding, suspending and
restricting the professional, occupational and recreational licenses for child
support arrearages and for noncompliance with certain processes relating to
paternity or child support proceedings.]
1. If the Commissioner receives a copy of
a court order issued pursuant to NRS
425.540 that provides for the suspension of all professional, occupational
and recreational licenses, certificates and permits issued to a person who is
the holder of a license as an escrow agent or escrow agency, the Commissioner
shall deem the license issued to that person to be suspended at the end of the
30th day after the date on which the court order was issued unless the
Commissioner receives a letter issued to the holder of the license by the
district attorney or other public agency pursuant to NRS 425.550 stating that the holder of the
license has complied with the subpoena or warrant or has satisfied the
arrearage pursuant to NRS 425.560.
2. The Commissioner shall reinstate a
license as an escrow agent or escrow agency that has been suspended by a
district court pursuant to NRS 425.540
if the Commissioner receives a letter issued by the district attorney or other
public agency pursuant to NRS 425.550
to the person whose license was suspended stating that the person whose license
was suspended has complied with the subpoena or warrant or has satisfied the
arrearage pursuant to NRS 425.560.
(Added to NRS by 1997, 2168; A 2005, 2807)
NRS 645A.097 Disciplinary proceedings, fines and penalties not affected by
expiration, revocation or voluntary surrender of license. The expiration or revocation of a license of
an escrow agent or agency by operation of law or by order or decision of the
Commissioner or a court of competent jurisdiction, or the voluntary surrender
of a license, does not:
1. Prohibit the Commissioner from
initiating or continuing an investigation of, or action or disciplinary
proceeding against, the escrow agent or agency as authorized pursuant to the
provisions of this chapter or the regulations adopted pursuant thereto; or
2. Prevent the imposition or collection of
any fine or penalty authorized pursuant to the provisions of this chapter or
the regulations adopted pursuant thereto against the escrow agent or agency.
(Added to NRS by 2009, 1552)
NRS 645A.100 Notice of refusal to issue license or of disciplinary action;
hearing; limitation on time to apply for hearing.
1. Notice of the entry of any order of
suspension, revocation or placement of conditions upon a license or of imposing
a fine or refusing a license to any escrow agent or agency must be given in
writing, served personally or sent by certified mail or by telegram to the last
known address of the agent or agency affected.
2. The agent or agency, upon application,
is entitled to a hearing. If an application is not made within 20 days after
the entry of the order, the Commissioner shall enter a final order.
(Added to NRS by 1973, 1309; A 1985, 1814; 1991, 1853; 2003, 984; 2011, 3602)
NRS 645A.110 Investigation by Commissioner; powers of Commissioner;
injunctive relief; enforcement of subpoenas.
1. The Commissioner may conduct an
investigation if it appears that an escrow agent or agency is conducting
business in an unsafe and injurious manner or in violation of this chapter or
if it appears that any person is engaging in the escrow business without being
licensed pursuant to the provisions of this chapter.
2. If upon investigation it appears that
the agent or agency is so conducting business or an unlicensed person is
engaged in the escrow business, the Commissioner may:
(a) Order the person to discontinue conducting
business in an injurious manner or in violation of this chapter. A person may,
within 30 days after receiving the order, file a verified petition with the
Commissioner for a hearing. If the Commissioner does not hold a hearing within
30 days after the petition is filed or issue a written decision within 45 days
after the hearing is held, the order is rescinded.
(b) So advise the district attorney of the county
in which the business is conducted or the Attorney General. The district attorney
or the Attorney General shall cause the appropriate legal action to be taken to
enjoin the operation of the business or prosecute the violations of this
chapter.
(c) Bring suit in the name and on behalf of the
State of Nevada against the person and any other person concerned in or in any
way participating in or about to participate in the unsafe or injurious
practices or action in violation of this chapter or regulations thereunder to
enjoin that person from continuing those practices or engaging therein or doing
any such act.
3. If the Commissioner brings suit, the
district court of any county of this State may grant an injunction to prevent
and restrain the unsafe, injurious or illegal practices or transactions. The
court may, during the pendency of the proceedings before it, issue such
temporary restraining orders as may appear to be just and proper. The findings
of the Commissioner shall be deemed to be prima facie evidence and sufficient
ground, in the discretion of the court, for the issuance ex parte of a
temporary restraining order. In any such court proceedings the Commissioner may
apply for and on due showing is entitled to have issued the court’s subpoena
requiring forthwith the appearance of any defendant and his or her employees
and the production of documents, books and records as may appear necessary for
the hearing of the petition, to testify and give evidence concerning the acts
or conduct or things complained of in the application for injunction.
(Added to NRS by 1973, 1309; A 1985, 1815; 1991, 1853)
NRS 645A.130 Procedures following decision on appeal.
1. If the order of the Commissioner is
reversed, the court shall specifically direct the Commissioner as to his or her
further action in the matter including the making and entering of any order and
any conditions, limitations or restrictions to be contained therein. The
Commissioner may revoke or alter the order for any proper cause which is
discovered after the order is issued.
2. If an order of the Commissioner is
affirmed, the appellant is not barred after 1 year from filing a new
application if the application is not otherwise barred or limited.
3. The appeal does not suspend the
operation of the order appealed from during the pendency of the appeal except
upon proper order of the court.
(Added to NRS by 1973, 1310; A 1977, 93; 1985, 1816; 1991, 1854)
NRS 645A.140 Powers of Commissioner when agency’s affairs in unsafe
condition.
1. When the Commissioner ascertains that
the assets or capital of any escrow agency are impaired or that an agency’s
affairs are in an unsafe condition, the Commissioner may immediately take
possession of all the property, business and assets of the agency which are
located in this state and retain possession of them pending further proceedings
provided for in this chapter.
2. If the board of directors or any
officer or person in charge of the offices of such an agency refuses to permit
the Commissioner to take possession of the property, the Commissioner shall
communicate that fact to the Attorney General. Thereupon the Attorney General
shall immediately institute such proceedings as may be necessary to place the
Commissioner in immediate possession of the property of the agency. The
Commissioner thereupon shall make or cause to be made an inventory of the
assets and known liabilities of the agency.
3. The Commissioner shall file one copy of
the inventory in his or her office and one copy in the office of the clerk of
the district court of the county in which the principal office of the agency is
located and shall mail one copy to each stockholder, partner, officer or
associate of the agency at his or her last known address.
4. The clerk of the court with which the
copy of the inventory is filed shall file it as any other case or proceeding
pending in the court and shall give it a docket number.
(Added to NRS by 1973, 1311; A 1985, 1816; 1991, 1854)
NRS 645A.150 Receivership.
1. The officers, directors, partners,
associates or stockholders of the escrow agency may, within 60 days after the
date the Commissioner takes possession of the property, business and assets,
make good any deficit which may exist or remedy the unsafe condition of its
affairs.
2. At the expiration of such time, if the
deficiency in assets or capital has not been made good or the unsafe condition
remedied, the Commissioner may apply to the court to be appointed receiver and
proceed to liquidate the assets of the agency which are located in this state
in the same manner as provided by law for liquidation of a private corporation
in receivership.
3. No other person may be appointed
receiver by any court without first giving the Commissioner ample notice of his
or her application.
4. The inventory made by the Commissioner
and all claims filed by creditors are open at all reasonable times for
inspection and any action taken by the receiver upon any of the claims is
subject to the approval of the court before which the cause is pending.
5. The expenses of the receiver and the compensation
of counsel, as well as all expenditures required in the liquidation
proceedings, must be fixed by the Commissioner subject to the approval of the
court, and, upon certification of the Commissioner, must be paid out of the
money that he or she possesses as receiver.
(Added to NRS by 1973, 1311; A 1985, 1816; 1991, 1855)
MONEY DEPOSITED IN ESCROW
General Provisions
NRS 645A.160 Money deposited in escrow must be deposited in escrow or trust
account. All money deposited in
escrow to be delivered upon the close of the escrow or upon any other
contingency must be kept separate from money belonging to the escrow agent or
agency and must be deposited in a financial institution that is federally
insured or insured by a private insurer approved pursuant to NRS 678.755 unless another financial
institution has been designated in writing in the instructions for the escrow.
The money when deposited must be designated as “trust funds” or “escrow
accounts” or under some other appropriate name indicating that the money is not
the money of the escrow agent or agency.
(Added to NRS by 1973, 1312; A 1985, 1817; 1999, 1539)
NRS 645A.170 Limitations on execution or attachment of money deposited in
escrow; commingling prohibited.
1. Money deposited in escrow is not
subject to execution or attachment on any claim against the escrow agent or
agency.
2. An escrow agent or agency shall not
knowingly keep or cause to be kept any money in any bank, credit union or other
financial institution under any name designating the money as belonging to the
clients of any escrow agent or agency, unless the money was actually entrusted
to the agent or agency by the client for deposit in escrow.
(Added to NRS by 1973, 1312; A 1985, 1817; 1999, 1539)
NRS 645A.171 Limitations on disbursements of money deposited in escrow
account.
1. An escrow agent shall not disburse
money from an escrow account unless deposits which are at least equal in value
to the proposed disbursements and which relate directly to the transaction for
which the money is to be disbursed have been received.
2. An escrow agent shall not disburse
money from an escrow account on the same business day as the money is deposited
unless the deposit is made in one of the following forms:
(a) Cash;
(b) Interbank electronic transfer such that the
money deposited is available for immediate withdrawal without condition and
payable in United States currency;
(c) Negotiable order of withdrawal, money order,
cashier’s check or certified check which is drawn from a financial institution
authorized to do business in this State;
(d) Any depository check, including any cashier’s
check or teller’s check, that is governed by the Expedited Funds Availability
Act, 12 U.S.C. §§ 4001 et seq.; or
(e) Any other form that permits conversion of the
deposit to cash on the same day as the deposit is made.
3. An escrow agent who disburses money
from an escrow account pursuant to this section on the next business day after
the day on which the money is deposited shall comply with all applicable
federal laws or regulations with respect to the disbursement of money accorded
next-day availability that is deposited in an escrow account.
(Added to NRS by 2009, 53; A 2011, 381; 2013, 1370)
Escrows for the Sale of Real Property
NRS 645A.173 Duty to record certain information concerning real estate
brokers and salespersons, mortgage brokers and mortgage bankers.
1. If an escrow for the sale of real
property is established, the holder of the escrow shall, on the date of
establishment of the escrow, record in writing the number and the date of
expiration of the:
(a) License issued pursuant to chapter 645 of NRS; or
(b) Certificate of cooperation issued pursuant to
NRS 645.605,
Ê of any real
estate broker, broker-salesperson or salesperson who will be paid compensation
from money held in the escrow for performing the services of a real estate
broker, broker-salesperson or salesperson in the transaction that is the
subject of the escrow. The holder of the escrow is not required to verify
independently the validity of the number of the license or certificate.
2. If an escrow for the sale of real
property is established and the real property is or will be secured by a
mortgage or deed of trust, the holder of the escrow shall, on the date of
establishment of the escrow, record in writing the number and the date of
expiration of the license issued pursuant to chapter
645B or 645E of NRS of any mortgage
broker or mortgage banker associated with the mortgage or deed of trust. The
holder of the escrow is not required to verify independently the validity of
the number of the license.
(Added to NRS by 1999, 873; A 2001, 2463; 2003, 3542)
NRS 645A.175 Duty to execute documents necessary to release money deposited
in escrow; exception for good faith disputes; recovery of damages for failure
to execute; award of attorney’s fees.
1. Except as otherwise provided in
subsection 2 or in the escrow agreement between the parties and the holder of
the escrow, upon the close of an escrow for the sale of real property or on the
date the escrow is scheduled to close if it has not closed, each party shall
execute the documents necessary to release the money deposited in the escrow.
2. A party may refuse to execute a
document necessary to release the money deposited in the escrow only if a good
faith dispute exists concerning that money.
3. Except as otherwise provided in NRS 645.8701 to 645.8811, inclusive, if a party refuses
to execute a document necessary to release the money deposited in the escrow
within 30 days after the holder of the escrow makes a written request for the
execution, the party injured by the failure of the other party to execute the
document may collect from that party:
(a) Actual damages of not less than $100 nor more
than 1 percent of the purchase price of the real property for which the money
was deposited in the escrow, whichever is greater;
(b) The money deposited in the escrow which was
not held to resolve a good faith dispute concerning the sale of the property;
and
(c) A reasonable attorney’s fee.
(Added to NRS by 1995, 1527; A 1999, 1180)
NRS 645A.177 Action to recover money deposited in escrow; discharge from
further responsibility for holder of escrow; right of holder to bring action
for interpleader.
1. If an action is filed to recover money
deposited in an escrow established for the sale of real property, the holder of
the escrow may deposit the money, less any fees or charges owed to the holder
of the escrow, with the court in which the action is filed.
2. A holder of an escrow who complies with
the provisions of subsection 1 is discharged from further responsibility for
the money which the holder of the escrow deposits with the court.
3. This section does not limit the right
of the holder of the escrow to bring an action for interpleader pursuant to N.R.C.P. 22 to determine the
rightful claimant of the money deposited in the escrow.
(Added to NRS by 1995, 1527)
MISCELLANEOUS PROVISIONS
NRS 645A.193 Attorney General to represent Division. The
Attorney General shall act as the attorney for the Division in all actions and
proceedings brought against or by the Division pursuant to any of the
provisions of this chapter.
(Added to NRS by 1985, 1807)
NRS 645A.195 Escrow agency that is not natural person to designate natural
person as qualified employee.
1. If an escrow agency is not a natural
person, the escrow agency must designate a natural person as a qualified
employee to act on behalf of the escrow agency.
2. The Division shall adopt regulations
regarding a qualified employee, including, without limitation, regulations that
establish:
(a) A definition for the term “qualified
employee”;
(b) Any duties of a qualified employee; and
(c) Any requirements regarding a qualified
employee.
(Added to NRS by 2011, 3595)
NRS 645A.196 Termination of employment of escrow agent: Duties of escrow
agency; prohibited actions.
1. Whenever an escrow agent terminates,
for any reason, his or her employment with the escrow agency with whom the
escrow agent was associated, the escrow agency shall:
(a) Immediately deliver or send by certified mail
to the Division the escrow agent’s license, together with a written statement
of the circumstances surrounding the termination.
(b) At the time of delivering or mailing the
license to the Division, address a communication to the last known residence
address of the escrow agent, advising the escrow agent that his or her license
has been delivered or mailed to the Division. A copy of the communication must
accompany the license when delivered or mailed to the Division.
2. An escrow agent shall not perform
either directly or indirectly any act for which a license is required pursuant
to this chapter:
(a) On or after the date the Division receives
the escrow agent’s license from the escrow agency until the license is
transferred or reissued or until a new license is issued.
(b) Without being associated with or employed by
a licensed escrow agency.
(Added to NRS by 1985, 1808)
NRS 645A.199 Proof of licensure required in action for collection of
compensation. No person engaged in
the business or acting in the capacity of an escrow agent or agency within this
state may bring or maintain any action in any court of this state for the
collection of compensation for the performance of any act pursuant to this
chapter without alleging and proving that the person was a licensed escrow
agent or agency at the time the alleged cause of action arose.
(Added to NRS by 1985, 1808; A 1993, 2806)
NRS 645A.200 Statutory and common-law rights unaffected. The provisions of this chapter do not limit
any statutory or common-law right of any person to bring an action in any court
for any act involved in the transaction of the escrow business or the right of
the State to punish any person for any violation of any law.
(Added to NRS by 1973, 1312)
NRS 645A.201 Exercise of jurisdiction over party to civil action; service of
summons to confer jurisdiction.
1. A court of this State may exercise
jurisdiction over a party to a civil action arising under the provisions of
this chapter on any basis not inconsistent with the Constitution of the State
of Nevada or the Constitution of the United States.
2. Personal service of summons upon a
party outside this State is sufficient to confer upon a court of this State
jurisdiction over the party so served if the service is made by delivering a
copy of the summons, together with a copy of the complaint, to the party served
in the manner provided by statute or rule of court for service upon a person of
like kind within this State.
3. In all cases of such service, the
defendant has 40 days, exclusive of the day of service, within which to answer
or plead.
4. This section provides an additional
manner of serving process and does not invalidate any other service.
(Added to NRS by 2009, 741)
UNLAWFUL ACTS; PENALTIES; REMEDIES
NRS 645A.210 Unlawful to engage in escrow business without license. It is unlawful for any person, unless exempted
under NRS 645A.015, to engage in or carry on, or
hold himself or herself out as engaging in or carrying on, the escrow business
or act in the capacity of an escrow agent or agency without first obtaining a
license as an escrow agent or agency.
(Added to NRS by 1973, 1306; A 1985, 1818)
NRS 645A.220 Transactions by foreign corporations. It
is unlawful for any foreign corporation to transact any escrow business in this
state unless it:
1. Qualifies under chapter 80 of NRS; and
2. Complies with the provisions of this
chapter unless exempted by NRS 645A.015.
(Added to NRS by 1973, 1312; A 1979, 401)
NRS 645A.221 Contracts for escrow transaction voidable for certain
violations; administrative fines. If
a person, or any general partner, director, officer, agent or employee of a
person, violates the provisions of NRS 645A.210 or
645A.220:
1. Any contracts entered into by that
person for the escrow transaction are voidable by the other party to the
contract; and
2. In addition to any other remedy or
penalty, the Commissioner may impose an administrative fine of not more than
$50,000.
(Added to NRS by 2009, 741)
NRS 645A.222 Civil action authorized for certain violations. In addition to any other remedy or penalty, if
a person violates the provisions of NRS 645A.210
or 645A.220, the respective parties to the escrow
transaction may bring a civil action against the person for:
1. Actual and consequential damages;
2. Punitive damages, which are subject to
the provisions of NRS 42.005;
3. Reasonable attorney’s fees and costs;
and
4. Any other legal or equitable relief
that the court deems appropriate.
(Added to NRS by 2009, 741)
NRS 645A.224 Employee of Division prohibited from interest in escrow agency. A person shall not have a pecuniary interest
in or act as an escrow agent for any escrow agency while he or she is an
employee of the Division.
(Added to NRS by 1985, 1807; A 1991, 1855)
NRS 645A.225 Charge for statement of interest payments prohibited. An escrow agent or agency shall not charge a
fee for any statement or tax return regarding payment of interest which federal
law requires the agent or agency to furnish and file.
(Added to NRS by 1989, 1068)
NRS 645A.230 Penalties for violations. Any
person who violates:
1. NRS 645A.160,
645A.210 or 645A.220
is guilty of a gross misdemeanor.
2. Any other provision of this chapter is
guilty of a misdemeanor.
(Added to NRS by 1973, 1313; A 1985, 1818)
NRS 645A.235 Restitution.
1. A person who engages in an activity for
which a license as an escrow agent or escrow agency is required pursuant to
this chapter, without regard to whether such a person is licensed pursuant to
this chapter, may be required by the Commissioner to pay restitution to any
person who has suffered an economic loss as a result of a violation of the
provisions of this chapter or any regulation adopted pursuant thereto.
2. Notwithstanding the provision of
paragraph (m) of subsection 1 of NRS
622A.120, payment of restitution pursuant to subsection 1 shall be done in
a manner consistent with the provisions of chapter
622A of NRS.
(Added to NRS by 2009, 741;
A 2011,
3602)
