Q: What is the definition of escrow?
“Escrow” means any transaction in which one person, for the purpose of effecting the sale, transfer, encumbrance or lease of real or personal property to another person or for the purpose of making payments under any encumbrance of such property, delivers any written instrument, money, evidence of title to real or personal property or other thing of value to a third person to be held by that third person until the happening of a specified event or the performance of a prescribed condition, when the instrument, money, evidence of title or thing of value is to be delivered by the third person to a grantee, grantor, promise, promisor, obligee, obligor, bailee or bailor or to any of his agents or employees, pursuant to the written escrow instructions.
Q: What is an escrow company?
An “escrow company” means any person engaged in the business of receiving escrows for deposit or delivery for compensation that is required to be licensed under the Escrow Company Act.
Q: Is New Mexico a licensing state for escrow companies?
Yes. No person shall engage in business as an escrow company unless that person is licensed as an escrow company.
Q: What is the cost of obtaining an escrow license?
The cost of obtaining an escrow license is $400 for an original license and $200 each additional year to renew.
Q: Is an escrow company required to maintain a bond?
An escrow company is required to maintain a bond in the amount of $100,000.