How Escrow Works In Nevada Real Estate

Buying or selling a home in Reno and hearing the word “escrow” a lot? You are not alone. The process can feel like a black box when you have timelines, inspections, and funding all happening at once. This guide breaks down how escrow works in Nevada, what to expect in Washoe County, common pitfalls to avoid, and how to move from contract to recorded ownership with confidence. Let’s dive in.

Escrow basics in Nevada

Escrow is a neutral third party that holds funds and documents while both sides complete the steps required to close. The escrow holder follows written instructions from you and the other party, then releases money and records documents once conditions are met.

In Nevada, most residential closings run through a title and escrow company. Escrow handles the funds and paperwork, while the title side searches public records and issues title insurance. These are related but different services. Title insurance protects the owner and the lender from covered title defects. Title insurance pricing and practices are regulated by the state, which you can verify with the Nevada Division of Insurance.

If you are using a mortgage, federal rules also shape your closing timeline. The lender must provide the Closing Disclosure at least three business days before you sign loan documents, as explained by the Consumer Financial Protection Bureau.

Who does what

• Escrow officer: Manages the file, holds funds, coordinates signatures, and follows written escrow instructions from buyer and seller.
• Title officer: Runs the title search, lists exceptions and items to clear, and issues the title policy at closing.
• Buyer: Delivers earnest money, completes inspections, finalizes loan, and wires funds.
• Seller: Provides required disclosures, completes payoff paperwork, and signs the deed.
• Lender: Orders the appraisal, completes underwriting, and wires loan funds.
• Real estate agent: Guides you through the steps and helps keep deadlines on track.

Reno escrow timeline overview

Every deal is unique, but 30 days is a common target in Washoe County when financing is involved. Shorter or longer timelines depend on your loan, HOA documents, and the complexity of title.

Step 1: Open escrow and deposit

Once the purchase agreement is signed, your agent helps open escrow with a title company. The buyer’s earnest money is deposited into the escrow account. Escrow assigns a file number and orders the title search.

Step 2: Title search and preliminary report

The title team searches public records for liens, easements, judgments, and the ownership chain. You and your lender receive a preliminary title report that lists what must be cleared before closing. If anything unexpected appears, the parties negotiate how to resolve it.

Step 3: Inspections and contingencies

Typical buyer protections include the home inspection, appraisal and loan approval, title contingency, and review of HOA documents for condos or planned communities. Many buyers schedule inspections within the first 5 to 10 business days. Sellers provide state-required disclosures early in this period, which you can confirm through the Nevada Real Estate Division.

Step 4: Loan processing and appraisal

If you are financing, your lender orders the appraisal and completes underwriting. If the appraised value comes in lower than the price, you may renegotiate or bring extra funds. Under federal TRID rules, your lender must deliver the Closing Disclosure at least three business days before you sign, a key milestone outlined by the CFPB.

Step 5: Clear title and HOA documents

Title issues like old liens or recording errors must be resolved before the lender can fund. For HOA properties, escrow gathers statements that show dues, any special assessments, and resale documents. Slow HOA responses can delay closing, so review these documents quickly.

Step 6: Sign and fund

When contingencies are removed and underwriting is complete, escrow prepares closing documents. Buyers sign mortgage documents. Sellers sign the deed and payoff authorizations. The lender wires funds or the buyer wires cash to close after confirming final numbers.

Step 7: Record and disburse in Washoe County

Escrow sends the deed and any loan documents to the Washoe County Recorder for recording. In most Reno transactions, ownership transfers when the deed is recorded. You can learn about recording processes and fees through the Washoe County Recorder. After recording, escrow disburses funds to the seller, pays off liens, commissions, and fees, and the buyer receives keys per the agreement.

Required Nevada seller disclosures

Nevada requires most sellers to provide the Seller’s Real Property Disclosure form and any other disclosures noted in the purchase contract. Timely and accurate disclosures help prevent late-stage issues. For current forms and guidance, visit the Nevada Real Estate Division.

Closing costs in Reno

Many items are negotiable, but you will see these common patterns in Washoe County:

• Sellers typically pay real estate commissions, title transfer documents they owe, and any agreed credits.
• Buyers typically pay lender charges, appraisal, and title insurance that benefits the buyer and the lender, if elected or required.
• Both sides share things like escrow fees and prorations as negotiated in the contract.

Ask your escrow officer for a draft settlement statement once major terms are set. Small corrections are normal. The final Closing Disclosure for financed buyers must be delivered at least three business days before signing per the CFPB.

Wire transfers and fraud safety

Wire fraud is a real risk in real estate. Criminals spoof emails and try to divert closing funds. To protect yourself:

• Call your escrow officer using a verified number, not a link in an email, before sending any wire.
• Confirm the full account name and number, and send a small test wire if your bank allows.
• Do not share wiring details over public Wi-Fi.
• If something seems off, stop and call immediately.

For official consumer warnings and steps to take if you are targeted, review guidance from the FBI and the CFPB.

Local factors to watch in Washoe County

• Title curative items: Old liens, unreleased loans, or name mismatches can take time to clear. Build a cushion into your timeline.
• HOA documents: Estoppel letters and resale packages can be slow. Start early and read for any special assessments.
• Environmental and insurance: Wildfire smoke impacts, flood zones, and seismic risk may affect insurance availability. Your lender or insurer may require specific coverage.
• Recording logistics: Missing signatures or notary errors can push recording to the next business day. Double-check IDs and initials during signing.

30-day escrow checklist

Use this sample plan and adjust to your contract dates and lender requirements.

Buyer early actions

• Get written loan pre-approval, not just pre-qualification.
• Deposit earnest money and save wire confirmation.
• Book a general home inspection and specialists such as roof or HVAC if needed.
• Review HOA documents quickly for dues and rules that affect you.
• Line up your closing funds and follow wire safety steps.

Seller early actions

• Complete required Nevada disclosure forms and deliver per the contract.
• Gather permits, warranties, and manuals for any upgrades.
• Confirm your mortgage payoff amount and be ready to sign payoff authorization.

Sample milestones

• Day 0: Escrow opens and earnest money is deposited.
• Days 1 to 7: Title search begins, disclosures delivered, inspections scheduled.
• Days 7 to 14: Inspections done and repair requests, if any, submitted. Appraisal ordered.
• Days 14 to 25: Underwriting review and title clearance.
• Day 27 to 30: Closing Disclosure delivered to buyer at least three business days before signing, signing appointments, funding, and recording.

Title insurance basics

If you use a mortgage, your lender will require a lender’s title policy. An owner’s title policy is optional but widely recommended because it protects your ownership against covered risks that could surface later. Nevada regulates title insurance rates and practices, and you can confirm details with the Nevada Division of Insurance.

When keys change hands in Reno

In Washoe County, the deed is recorded with the county to put the transfer on public record. Most transactions consider the transfer complete at recording. After that, escrow disburses funds and you receive keys based on your agreement. Property taxes are prorated as of the closing date using local practice. For tax calendars and assessment information, visit the Washoe County Assessor.

Partner through escrow

You do not have to manage this timeline alone. With local experience across master-planned communities and new-home sales cycles, you can move from contract to recording with clarity and fewer surprises. If you are planning to buy or sell in Reno, get a personalized plan and market guidance. Request your complimentary valuation and next-step recommendations with Unknown Company.

FAQs

Who holds my earnest money in a Reno purchase?

• In Nevada, your earnest money is held by the escrow or title company in a trust account and released only according to written instructions in your contract.

When does title transfer in Washoe County?

• Title typically transfers when the deed is recorded with the Washoe County Recorder, which creates public notice of the change in ownership.

What disclosures must Nevada sellers provide?

• Most sellers must deliver the Seller’s Real Property Disclosure and any contract-required documents. Current forms and guidance are available through the Nevada Real Estate Division.

Do I need owner’s title insurance in Nevada?

• A lender requires a lender’s policy if you finance. An owner’s policy is optional but commonly recommended to protect you from covered title defects.

What if the appraisal is lower than the price?

• You can renegotiate, the seller can adjust price, or you can bring extra funds. Your contract’s appraisal contingency will guide the options.

How can I avoid wire fraud during closing?

• Always verify wiring instructions by phone using a known good number, never from an email link. Confirm details with your escrow officer and follow FBI and CFPB guidance if anything seems suspicious.