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

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September 17, 2024

by a searcher from Brigham Young University in Seattle, WA, USA

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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Reply by a searcher
from Baylor University in Denver, CO, USA
Thanks for the tag, Luke! I actually have the answer for this post 😄 Kin, I spent a couple weeks calling title companies around the country, focusing mostly on ones that deal with IVF as they are usually the only companies that will hold escrow without a lawyer and a big deal on the table. Even the IVF places will only hold a certain amount and charge quite a bit to do so. I finally came across the company that will handle closing escrow without cost. I spoke to the owner of the company to verify how or why someone would do this and it was all legitimate, ran it through my lawyer (ex M&A attorney for 40+ years) and he verified they were legitimate as well(he was skeptical at first). They handled the escrow for my last company purchase and I would absolutely use them again! No fees either. (This isn’t a sales pitch I have no affiliation) https://urldefense.com/v3/__http:/www.americandeposits.com/__;!!JYP6xId3!sC2CC_xcI3xBjtPCbKy_ko_2KuvPt_HZH7pa6KqCU-Ho-kfu-WfHqZdZiDXkQ5ry0A$



email the CEO (Elle) with any questions
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Reply by a lender
in Stuart, FL, USA
A title company typically gets involved if there's real estate in the transaction and they will accommodate closing the loan for the buyer. In most cases, attorneys typically handle business acquisitions when there is no real estate involved.

In a general sense, the attorney and or closing agent can represent the closing, they can represent the closing and one party, but they cannot represent both parties at the same time. Or there can be a closing attorney that only represents the deal and the buyer and seller each have their own legal counsel.

If the seller has their own attorney, you do not necessarily need to have one although it would probably be wise and conversely, you can have one and the seller doesn't necessarily have to have one. There are certain lenders that will mandate you have legal representation if you do decide to get a loan to finance the business. It just depends on who the lender is.
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