Free Resource · Title, Escrow & Mortgage Terms
Nevada Real Estate Glossary
A
Abstract of Title
A condensed history of a property's ownership, including all deeds, mortgages, liens, and legal actions recorded against the property. Used by title companies to identify any defects in the chain of title before issuing title insurance.
Adjustable-Rate Mortgage (ARM)
A home loan with an interest rate that changes periodically based on a market index. ARMs typically offer a lower initial rate than fixed-rate mortgages but carry the risk of rate increases over time.
Amortization
The process of paying off a loan through regular scheduled payments over time. Each payment covers both interest and principal, with the interest portion decreasing and the principal portion increasing over the life of the loan.
Annual Percentage Rate (APR)
The true cost of borrowing, expressed as a yearly rate. APR includes the interest rate plus lender fees, making it a more complete measure of loan cost than the interest rate alone.
Appraisal
An independent professional opinion of a property's market value, conducted by a licensed appraiser. Lenders require an appraisal before approving a mortgage to ensure the property is worth at least the loan amount.
As-Is Sale
A transaction in which the seller makes no repairs and the buyer agrees to purchase the property in its current condition. The seller is still required to disclose known material defects under Nevada law.
B
Beneficiary
In a deed of trust, the lender is the beneficiary — the party whose benefit the trust is held for. The beneficiary holds the right to collect payment under the terms of the loan.
Binder
A temporary insurance agreement that provides coverage until a formal policy is issued. In real estate, a homeowner's insurance binder is typically required by lenders before closing.
C
CC&Rs
Covenants, Conditions, and Restrictions — rules that govern a property within a homeowners association (HOA). CC&Rs run with the land and are binding on all current and future owners.
Chain of Title
The chronological sequence of all historical transfers of ownership for a property, from the earliest recorded owner to the present. A clear chain of title is required for title insurance to be issued.
Clear Title
A title that is free from any liens, claims, encumbrances, or other legal questions about ownership. A clear title is required before a property can be sold.
Closing
The final step in a real estate transaction where all documents are signed, funds are disbursed, and ownership is transferred from seller to buyer. In Nevada, closings are handled by licensed title and escrow companies.
Closing Costs
Fees and expenses paid at or before the closing of a real estate transaction, in addition to the purchase price. These typically include title insurance, escrow fees, recording fees, lender fees, and prepaid items.
Closing Disclosure (CD)
A federal form that outlines the final terms and costs of a mortgage loan. Lenders must provide the CD at least three business days before closing, giving buyers time to review and compare it to their Loan Estimate.
Cloud on Title
Any claim, lien, encumbrance, or legal question that affects a property's title and could prevent the transfer of clear ownership. Clouds on title must be resolved before closing.
Commission
A fee paid to real estate agents for their services, typically calculated as a percentage of the sale price. In Clark County, commission is usually paid by the seller at closing.
Comparable Sales (Comps)
Recent sales of similar properties in the same area, used to determine the fair market value of a home. Comps are the basis of a Comparative Market Analysis (CMA) prepared by real estate agents.
Contingency
A condition that must be met for a real estate contract to become binding. Common contingencies include inspection, financing (loan approval), and appraisal. If a contingency is not satisfied, the buyer can typically cancel without losing their earnest money.
Conveyance
The transfer of title or ownership of real property from one party to another, typically accomplished through the recording of a deed.
D
Deed
A legal document that transfers ownership of real property from one party (grantor) to another (grantee). The deed must be signed, notarized, and recorded with Clark County to be effective.
Deed of Trust
Nevada's primary instrument for securing a mortgage loan, involving three parties: the borrower (trustor), the lender (beneficiary), and a neutral third party (trustee). If the borrower defaults, the trustee can sell the property through non-judicial foreclosure.
Default
Failure to meet the obligations of a loan agreement, most commonly by missing mortgage payments. Default can lead to foreclosure, in which the lender takes ownership of the property.
Disbursement
The distribution of funds by an escrow officer at closing. This includes paying off existing loans, real estate commissions, closing costs, and delivering net proceeds to the seller.
Due Diligence
The buyer's right and responsibility to investigate a property before completing a purchase. Includes reviewing inspection reports, title commitments, HOA documents, and seller disclosures within the contract's specified timeframes.
E
Earnest Money
A good-faith deposit made by the buyer when submitting a purchase offer, demonstrating serious intent to purchase. Earnest money is held in escrow and applied to the purchase price at closing. In Clark County, it is typically 1%-3% of the purchase price.
Easement
A legal right for someone other than the property owner to use a portion of the property for a specific purpose, such as a utility company's right to access power lines. Easements are disclosed in the title commitment.
Encumbrance
Any claim, lien, easement, or restriction that affects a property's title or limits its use. Encumbrances are identified during the title search and disclosed in the title commitment.
Equity
The difference between a property's market value and the total amount owed on any mortgages or liens against it. Equity increases as the property appreciates or as the loan balance is paid down.
Escrow
A neutral third-party arrangement in which funds, documents, and instructions are held until all conditions of a real estate transaction are met. In Nevada, licensed escrow companies like Platinum Title & Escrow manage this process.
Escrow Officer
A licensed professional who manages the escrow process, coordinates between all parties, holds funds and documents, and ensures all closing conditions are met before disbursing funds and recording the deed.
F
FHA Loan
A mortgage insured by the Federal Housing Administration, designed for borrowers with lower credit scores or smaller down payments. FHA loans require a minimum 3.5% down payment and mortgage insurance premiums.
Final Walk-Through
A buyer's last inspection of a property, typically conducted 24 hours before closing. The purpose is to confirm the property is in the agreed-upon condition, agreed repairs are complete, and no new damage has occurred.
Foreclosure
The legal process by which a lender takes ownership of a property after a borrower defaults on their mortgage. Nevada allows non-judicial foreclosure through a deed of trust, which is generally faster than court-supervised judicial foreclosure.
G
Grant Deed
A type of deed used to transfer property that includes implied warranties — the grantor guarantees they have not previously conveyed the property to anyone else and that the property is free from undisclosed encumbrances.
Grantee
The party receiving title to a property in a deed — typically the buyer.
Grantor
The party transferring title to a property in a deed — typically the seller.
H
HOA (Homeowners Association)
An organization that manages common areas and enforces community rules in a planned development or condominium. Nevada has specific laws governing HOA resale packages and timelines.
HOA Resale Package
A set of documents that Nevada HOAs are required to provide to sellers when a home is sold. Includes financial statements, CC&Rs, bylaws, meeting minutes, and information about pending assessments. Buyers have a right to cancel based on the contents.
HUD Settlement Statement
A standardized form that itemizes all charges and credits in a real estate transaction. For most residential transactions, it has been replaced by the Closing Disclosure, but may still be used in certain transactions.
I
Impound Account
Also called an escrow account. A lender-held account used to collect and pay property taxes and homeowner's insurance on behalf of the borrower. Monthly mortgage payments often include an impound contribution.
Inspection Contingency
A provision in a purchase agreement giving the buyer the right to have the property professionally inspected and to negotiate repairs or cancel the contract based on the findings within a specified timeframe.
J
Joint Tenancy
A form of co-ownership in which two or more parties hold equal shares of a property with the right of survivorship — meaning if one owner dies, their share automatically passes to the surviving owner(s) without going through probate.
Judgment Lien
A court-ordered lien placed on a property when the owner loses a civil lawsuit. Judgment liens must be paid off before the property can be sold with clear title.
L
Lender's Title Insurance
A title insurance policy that protects the lender's financial interest in a property up to the loan amount. Required by virtually all mortgage lenders. It does not protect the buyer's equity.
Lien
A legal claim against a property as security for a debt or obligation. Common liens include mortgages, property tax liens, HOA liens, and mechanic's liens. Liens must generally be paid off before title can transfer.
Lis Pendens
Latin for 'suit pending.' A legal notice recorded in the property records indicating that a lawsuit involving the property is in progress. A lis pendens creates a cloud on title and must be resolved before closing.
Loan Estimate
A standardized federal form provided by lenders within three business days of receiving a mortgage application. It outlines estimated loan terms, monthly payments, and closing costs.
Loan-to-Value Ratio (LTV)
The ratio of the loan amount to the appraised value of the property. A lower LTV indicates more equity. Most conventional loans require an LTV of 80% or less to avoid PMI.
M
Mechanic's Lien
A lien filed by a contractor, subcontractor, or supplier who has not been paid for work or materials provided to improve a property. In Nevada, mechanic's liens can be filed even after a property has been sold if the work was done before closing.
Mortgage
A loan used to purchase real estate, in which the property itself serves as collateral. In Nevada, the primary loan instrument is actually a deed of trust, though 'mortgage' is commonly used to refer to home loans in general.
Mortgage Insurance Premium (MIP)
Insurance required on FHA loans that protects the lender if the borrower defaults. MIP includes an upfront payment at closing and an ongoing monthly premium.
N
Nevada Transfer Tax
A state and county tax charged when real property is transferred. In Clark County, the rate is $2.55 per $500 of value (approximately 0.51% of the sale price). Typically paid by the seller at closing.
Non-Judicial Foreclosure
A foreclosure process that does not require court involvement, available in Nevada through the deed of trust structure. Generally faster than judicial foreclosure, following a Notice of Default and a trustee's sale.
Notary Public
A state-licensed official authorized to witness and authenticate signatures on legal documents, including real estate closing documents. Nevada requires notarization of deeds and many closing documents.
O
Owner's Title Insurance
A title insurance policy that protects the buyer's equity against title defects, liens, and claims that existed before the sale. In Clark County, it is customary for the seller to pay for the owner's policy.
P
Payoff Statement
A document from a lender showing the exact amount needed to fully satisfy a mortgage loan as of a specific date. Required at closing to ensure the seller's loan is paid off from the proceeds of the sale.
PITI
Principal, Interest, Taxes, and Insurance — the four components of a typical monthly mortgage payment. Lenders use PITI to calculate debt-to-income ratios during underwriting.
PMI (Private Mortgage Insurance)
Insurance required by conventional lenders when a borrower's down payment is less than 20%. PMI protects the lender and can typically be cancelled once the LTV reaches 80%.
Power of Attorney
A legal document authorizing one person to act on behalf of another. In real estate, a power of attorney may allow an agent to sign closing documents on behalf of a buyer or seller who cannot be present.
Pre-Approval
A lender's written commitment to loan a borrower a specified amount based on a verified review of credit, income, and assets. Required by most Nevada listing agents before they will show homes.
Preliminary Title Report
A report issued by the title company before closing identifying the current state of the title, including any liens or encumbrances that must be resolved before title insurance can be issued.
Probate
The legal process of settling a deceased person's estate under court supervision. Real property owned solely by a deceased person must pass through probate before it can be sold, unless held in a trust or with right of survivorship.
Purchase Agreement
A legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale. Also called a Purchase and Sale Agreement or Real Estate Purchase Contract (REPC).
Q
Quitclaim Deed
A deed that transfers whatever ownership interest the grantor has in a property, without any warranties or guarantees of clear title. Commonly used to add or remove a spouse from title, or to transfer property between family members.
R
Real Property Transfer Declaration
A form required by Clark County when real property is sold, documenting the sale price and terms. Used by the Assessor's office to assess transfer taxes.
Recording
The process of filing a deed or other legal document with Clark County Recorder's Office to make it part of the public record. Recording officially transfers ownership.
Recording Fees
Fees charged by Clark County for recording the deed and other documents at closing. Typically paid by the buyer.
S
Seller's Disclosure
A form required by Nevada law in which the seller discloses known material defects and conditions affecting the property. Sellers who fail to disclose known defects can face legal liability after closing.
Settlement Statement
A document that itemizes all financial transactions in a real estate closing, showing debits and credits for both buyer and seller. Also called a HUD-1 or Closing Disclosure.
Survey
A measurement and mapping of a property's boundaries, improvements, and easements conducted by a licensed surveyor. May be required by lenders or title companies to identify boundary issues or encroachments.
T
Tenancy in Common
A form of co-ownership in which two or more parties hold interests that may be unequal and can be sold or transferred independently. Unlike joint tenancy, there is no right of survivorship.
Title
Legal ownership or the right to ownership of a property. A person with clear title has the legal right to occupy, use, and sell the property.
Title Commitment
A promise by a title insurance company to issue a policy after closing, subject to certain conditions. The commitment identifies the current state of title including any liens or encumbrances that must be cleared.
Title Insurance
Insurance that protects against financial loss from defects in title, liens, or claims against a property that existed before the sale. There are two types: owner's policies (protects the buyer) and lender's policies (protects the lender).
Title Search
An examination of public property records to determine the history of ownership and identify any liens, encumbrances, or defects in the title. Conducted by the title company before issuing a title commitment.
Trustee
In a deed of trust, the neutral third party who holds legal title to a property as security for a loan. If the borrower defaults, the trustee has the power to sell the property through a non-judicial foreclosure sale.
Trustor
In a deed of trust, the borrower — the party who transfers legal title to the trustee as security for the loan while retaining the right to use and occupy the property.
U
Underwriting
The process by which a lender evaluates a borrower's creditworthiness, income, assets, and property value to determine whether to approve a mortgage loan and under what terms.
V
VA Loan
A mortgage loan guaranteed by the U.S. Department of Veterans Affairs, available to eligible veterans, active-duty service members, and surviving spouses. VA loans typically require no down payment and no private mortgage insurance.
Vesting
The manner in which title to a property is held. Common vesting options in Nevada include joint tenancy, tenancy in common, community property, and community property with right of survivorship.
W
Warranty Deed
A deed in which the grantor guarantees clear title and promises to defend the buyer against any future title claims. Provides the strongest form of title protection among deed types.
Wire Fraud
A federal crime in which fraudsters impersonate escrow officers or real estate agents via email to redirect closing funds to criminal accounts. Wire fraud is the #1 financial threat in real estate transactions. Always verify wiring instructions by phone at a known number before sending any funds.
Z
Zoning
Local government regulations that control how property can be used, including restrictions on residential, commercial, industrial, or agricultural uses. Zoning also regulates building size, height, and setbacks.
Zoning Variance
Permission granted by local authorities to use property in a manner that deviates from current zoning regulations. Variances are typically granted when strict compliance would create undue hardship.