Escrow company vs attorney for escrow / closing facilitation? (Nevada)

by a searcher from Brigham Young University

3 weeks ago

Have anyone used an escrow company vs. an attorney to facilitate escrow/closing of a business transaction? I called up a few title companies and they don't do business transactions.

I wonder if this is state-specific or if most transactions are facilitated by attorneys. If I use attorneys, do they need to be a neutral party, or can those be done by buy- or sell-side's attorneys?

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searcher from Brigham Young University

Through referral from local title companies I got connected to this company BCM services who can escrow business transactions in Nevada. https://bcmservices.com/

They charge a flat $2200 + 0.003% of the deal size. Aside from holding funds, they will also perform lien searches on the company and its assets, and confirm with local tax agencies for any overdue taxes.

3 weeks ago | like reply | 0 likes

professional from Western Washington University

I closed a sub $1M deal a few months back. Initially the broker steered both parties to a 3rd party attorney. It got complicated because seller's attorney objected to the escrow agreement. We switched to my attorney (buyer) and it sailed through very smoothly. It's my understanding that when using either the buyer's or seller's attorney for escrow that it is commonly the buyer's attorney. Explanation is that there are a good many details that need to go to the attorney holding the escrow and the buyer's attorney already has that information. As the buyer, I'd be reluctant to provide that information to the seller's attorney.

Larger deals are more likely to need a 3rd party escrow attorney / agent. Nearly any reputable M&A attorney will know of several who can provide that service.

Hope that helps.

3 weeks ago | like reply | 1 like

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