645.8781 - Duties of escrow agent upon notice of claim. - Nevada Statutes - USA Laws Searching

Statutes > Nevada Statutes > TITLE 54 - PROFESSIONS, OCCUPATIONS AND BUSINESSES > Chapter 645 - Real Estate Brokers and Salespersons > BROKERAGE AGREEMENTS INVOLVING COMMERCIAL REAL ESTATE > Rights, Duties and Liabilities Relating to Commissions > 645.8781 - Duties of escrow agent upon notice of claim.

645.8781 - Duties of escrow agent upon notice of claim.

645.8781  Duties of escrow agent upon notice of claim.

      1.  Except as otherwise provided in this subsection, if:

      (a) An escrow agent receives a notice of a claim pursuant to NRS 645.8765;

      (b) A notice of claim is recorded pursuant to NRS 645.8775; or

      (c) An escrow agent has actual notice of a claim specified in paragraph (b),

Ê the escrow agent shall reserve from the owner’s net proceeds an amount that is equal to the amount claimed by the real estate broker in his or her recorded claim. If the amount of the owner’s net proceeds is insufficient to satisfy the amount of the claim, the escrow agent shall reserve the entire amount of the owner’s net proceeds. In determining whether the amount of the owner’s net proceeds is insufficient to satisfy the amount of the claim, the escrow agent may consider any encumbrance, claim or lien that has priority over the claim of the real estate broker pursuant to NRS 645.8795.

      2.  If the escrow agent determines that the amount of the owner’s net proceeds is insufficient to satisfy the amount of the claim, the escrow agent:

      (a) Shall, within 3 days after making that determination but not later than the close of escrow, notify the real estate broker of that fact in writing; and

      (b) Shall not release to the owner any portion of the owner’s net proceeds unless the escrow agent receives a copy of the written agreement executed by the owner and the real estate broker authorizing the escrow agent to release those proceeds to the owner.

      3.  Except as otherwise provided in paragraph (b) of subsection 2 and NRS 645.8791, if an owner’s net proceeds or any portion of an owner’s net proceeds are reserved pursuant to this section, the escrow agent who reserves those proceeds shall not release the proceeds to any person until the rights of the owner and the real estate broker are determined pursuant to NRS 645.8791.

      4.  A reservation of an owner’s net proceeds or any portion of an owner’s net proceeds pursuant to this section does not relieve the owner of the obligation to close escrow for the commercial real estate.

      (Added to NRS by 1999, 1177)

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