Escrow & title tips from Ticor Title

The last couple months I have compiled and posted title & escrow related tips presented by Ticor Title.  Though these weekly tips are directed to real estate professionals I believe consumers will also benefit from this information.

To see previously posted tips, click:
April 21 – Ticor Title REO tips #1- #4
and
May 19 – More REO tips from Ticor Title  (tips #5 – #7)

Here are the latest tips from our friends at Ticor: 

Tip #8: What is the role of a local escrow officer when acting as a notary and/or handling an accommodation signing, on an REO transaction, handled by an out of area escrow company?
If you have a REO transaction handled by an out of area escrow company, there are times that a local escrow officer can notarize documents on behalf of the out of area escrow officer. Because we are not a party to the transaction, we act solely as a notary and do not have access to the details of the transaction. The notary (local escrow officer) does not have the ability to access or change documents which would include final HUD’s, escrow instructions and supplements, handling or disbursement of funds, etc. All correspondence must be done through the escrow officer handling the REO transaction, not the local notary.

Tip #9:  What is the role of a local escrow officer who is doing a sub-escrow on behalf of an out of area escrow company, who is handling the REO transaction?
If you have a REO transaction handled by an out of area escrow company, there are times that a local escrow officer will be asked by the out of area escrow company to do a sub-escrow.
A sub-escrow would be opened when the lender of the borrower will only fund to the title company issuing the title policy. In this case, the local escrow officer from the title company issuing the final title policy(s) receives funds and disburses monies to specific parties or lien holders on the property. For example: taxes, HOA, sewer, garbage, and any other items related to the issuance of a title insurance policy. The out of area escrow company handles all other disbursements, such as commissions, repairs, proceeds, etc.

Tip #10:  What is Assembly Bill 133 (AB 133)? Nevada is now a Good Funds State
[Part 1 of 2;  Part 2 will explain how this affects real estate transactions]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 645A of NRS is hereby amended by adding thereto a new section to read as follows:
1. No escrow officer or person who acts as an escrow agent may 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. No escrow officer or person who acts as an escrow agent may 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;
(c) Negotiable order of withdrawal, money order, cashier’s check or certified check which is payable in this State and which is drawn from a financial institution located 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. As used in this section, “escrow officer” has the meaning ascribed to it in NRS 692A.028.
Section 2. This act becomes effective upon passage and approval for the purpose of adopting regulations and on October 1, 2009, for all other purposes.

Tip #11:  Now That Nevada Is A Good Funds State, How Is That Going To Affect Real Estate Transactions?  [Part 2 of 2]
As of October 1, 2009 all escrow agents and title insurance companies will have to adhere to the new amended Section 1 of the 645A NRS Statute.
In the past it was common for escrow agents and title insurance companies to accept personal checks and other funds to close a transaction on the same day. These funds did not have to clear the bank prior to closing.
With this new law, escrow and title companies can only accept cash*, wired funds, money orders, cashier’s check or certified check, and it must clear the escrow holder’s bank before they are allowed to close on a transaction. The cashiers check or certified check must be issued from a bank within the State of Nevada.
With this new law, transactions could possibly be delayed depending on money clearing the escrow holder’s bank.
*Each Escrow and/or Title Insurance Company has their own requirements; please make sure you contact them prior to providing funds.

Tip #12: What is SB 128 – Amendment to Section 1 of the NRS Statute on Foreclosure & Trustee Sales?
SB 128 amends Section 1 of the existing law on trustee sales/foreclosures. This became effective July 1, 2009.  Below are some of the key elements of SB 128:
(1) require the trustee to record the sale of the property with the appropriate office of the county recorder within 30 days after the date of the sale or deliver, within 20 days after the date of the sale, the deed to the successful bidder, who must then record the deed with the appropriate office of the county recorder within 10 days after the date of delivery
(2) make the successful bidder liable for certain damages for failure to cause such recordation. (NRS 107.080) For A Complete Copy Of This Bill, Go To:
http://leg.state.nv.us/75th2009/Bills/SB/SB128_EN.pdf

Tip #13: What Is The Nevada Foreclosure Mediation Program?
The Foreclosure Mediation Program was established as a result of the Assembly Bill 149, passed during the 2009 Session of the Nevada Legislature. Its goal is to address the foreclosure crisis and to help keep Nevada families in their homes.
This Foreclosure Mediation Program is for owner-occupied residential properties that are subject to foreclosure notices (e.g. Notice of Default and Election to Sell) filed on or after July 1, 2009.
Mediation is an alternative method to help parties resolve disputes by agreement with the help of trained and qualified mediators.
For Information On The Nevada Foreclosure Mediation Program, Go To:
http://www.nevadajudiciary.us/index.php/foreclosure-mediation.html
and Election/Waiver of Mediation Form:
http://www.nevadajudiciary.us/index.php/view-documents-and-forms.html?func=fileinfo&id=1982

Ticor Title wants your comments & feedback! So, if you have a question you would like answered that is title & escrow related, please email renosales@ticortitle.com.  They will put it in Ticor’s Tip of the Week.