As used in this chapter, unless the
context otherwise requires:
1. “Commissioner” means the Commissioner of Mortgage Lending.
2. “Division” means the Division of Mortgage Lending of the
Department of Business and Industry.
3. “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.
4. “Escrow agency” means:
(a) Any person who employs one or more escrow agents; or
(b) An escrow agent who administers escrows on his own behalf.
5. “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 )
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
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
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 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, he 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 his application satisfactory
proof that he, in good standing, currently holds a license, or held a
license, within 1 year before the date he submits his 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 officer, director or trustee of an escrow agency if he is the
holder of an active license issued pursuant to chapter 645 of NRS.
(Added to NRS by 1973, 1306; A 1985, 1810; 1987, 117; 1991, 1848;
1995, 1003; 1997, 2169; 2005, 2779 , 2807 )
[Effective until the date of the repeal of 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 he 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 he 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 )
[Effective on the date of the repeal of 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 he 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 he 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
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. 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 he 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)
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)
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)
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 )
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)
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 license before its expiration,
his 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 1 year 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 Fund 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 )
SURETY BONDS
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 is associated or
employed.
3. The bond must be in substantially the following form:
Know All Men 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 Financial Institutions 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 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 Financial
Institutions 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 Financial Institutions 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
...............................................................
Licensed resident 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 .
(Added to NRS by 1973, 1306; A 1985, 1810; 1991, 1849; 1993, 503,
1891; 1995, 527, 1004; 1999, 3762 ; 2001, 282 )
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 )—(Substituted in revision for NRS
645A.031)
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 license will be revoked unless he 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 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, his license must be revoked on the
date the bond is cancelled.
(Added to NRS by 1985, 1808; A 1991, 1850; 1995, 1006)
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 him:
(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
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 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 )
1. In the conduct of any examination, investigation or hearing,
the Commissioner may:
(a) Compel the attendance of any person by subpoena.
(b) Administer oaths.
(c) 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)
1. The Commissioner shall establish by regulation the fees to be
paid by escrow agencies for the supervision and examination of such
agencies by the Commissioner or the Division.
2. In establishing the fees, the Commissioner shall consider:
(a) The complexity of the various examinations to which the fees
apply;
(b) The skill required to conduct such examinations;
(c) The expenses associated with conducting such 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)
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 )
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)
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 he considers necessary any information which
in his 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)
1. Except as otherwise provided in this section, 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 )
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, he 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 a portion of the cost of the investigation as the Commissioner
requires. All money received by the Commissioner pursuant to this section
must be deposited in the Fund 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 employment with a financial institution.
(Added to NRS by 1993, 502; A 2003, 3542 )
1. The Commissioner may refuse to license any escrow agent or
agency or may suspend or revoke any license or impose a fine of not more
than $500 for each violation by entering an order to that effect, with
his findings in respect thereto, if upon a hearing, it is determined that
the applicant or licensee:
(a) In the case of an escrow agency, is insolvent;
(b) Has violated any provision of this chapter or any regulation
adopted pursuant thereto 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 cannot continue in business with safety to his
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 or licensee 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
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 a felony relating to the practice of
escrow agents or agencies or any misdemeanor of which an essential
element is fraud;
(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 own or converted
the money of others to his 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 is acting in the dual
capacity of escrow agent or agency and undisclosed principal in any
transaction; or
(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 for committing such an act under instruction by the escrow agency.
2. It is sufficient cause for the imposition of a fine or the
refusal, suspension or revocation of 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 )
[Expires by limitation 2 years after the date of the repeal of
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 )
1. Notice of the entry of any order of suspension or revocation 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
)
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 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)
1. If the order of the Commissioner is reversed, the court shall
specifically direct the Commissioner as to his 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)
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, he 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
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 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)
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 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 possesses as receiver.
(Added to NRS by 1973, 1311; A 1985, 1816; 1991, 1855)
MONEY DEPOSITED IN ESCROW
General Provisions
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 )
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 )
Escrows for the Sale of Real Property
NRS 645A.173 Duty to record certain information concerning real
estate brokers and salesman, 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-salesman or salesman who will be paid
compensation from money held in the escrow for performing the services of
a real estate broker, broker-salesman or salesman 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 )
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 )
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 he 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
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)
1. Whenever an escrow agent terminates, for any reason, his
employment with the escrow agency with whom he 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 him that his 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 his license from the
escrow agency until his 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)
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 he 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)
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)
UNLAWFUL ACTS; PENALTIES
It is unlawful for any person, unless exempted under NRS
645A.015 , to engage in or carry on,
or hold himself 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)
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)
A person shall not have a pecuniary interest in or act as
an escrow agent for any escrow agency while he is an employee of the
Division.
(Added to NRS by 1985, 1807; A 1991, 1855)
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)
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)
|
