What Las Vegas Sellers Should Know About Title Insurance

by Ryan Rose

Title insurance is part of every real estate transaction, but many sellers do not fully understand what it is or why it matters. As a seller, title insurance affects your closing costs and protects the buyer (and their lender) from problems with your property's ownership history.

What Title Insurance Does

Title insurance protects against defects in the property's title, which is the legal record of ownership. It covers issues like:

Title Issue	What It Means
Liens	Unpaid debts attached to property (HOA, taxes, contractors)
Encumbrances	Easements or restrictions limiting property use
Ownership disputes	Claims from heirs, ex-spouses, or others
Recording errors	Mistakes in public records
Fraud or forgery	Previous fraudulent transfers in chain of title

Two Types of Title Insurance

Real estate transactions typically involve two policies:

Owner's policy. Protects the buyer's ownership interest for as long as they own the property. In Nevada, the seller customarily pays for this policy.

Lender's policy. Protects the mortgage lender's interest. Required for financed purchases. The buyer typically pays for this policy.

What Sellers Pay

In Las Vegas and throughout Nevada, sellers customarily pay for the owner's title insurance policy. This cost is part of your closing costs as a seller.

Title insurance is a one-time premium paid at closing, not an ongoing cost. Rates are regulated in Nevada and based on the sale price:

Approximate costs:

$400,000 sale: approximately $1,200-1,500
$500,000 sale: approximately $1,400-1,800
$600,000 sale: approximately $1,600-2,000

Exact rates depend on the title company and any additional endorsements.

The Title Search Process

Before issuing a policy, the title company searches public records to identify any issues. This search examines:

Deed records. Chain of ownership from previous owners to you.

Mortgage records. Any loans secured by the property.

Tax records. Property tax payment history.

Judgment records. Court judgments that may have attached to the property.

HOA records. Any unpaid HOA dues or violations.

What Can Delay Closing

Title issues discovered during the search can delay your sale. Common problems include:

Outstanding liens. Tax liens, mechanic's liens, or judgment liens must be paid at or before closing.

Open permits. Outstanding permits sometimes appear on title searches and may need resolution.

HOA issues. Unpaid assessments or violations create liens that must be cleared.

Boundary disputes. Survey issues or encroachments may need resolution.

Estate issues. If you inherited the property, proper probate documentation is required.

Clearing Title Issues

If the title search reveals problems:

Pay off liens. Most liens are paid from your sale proceeds at closing.

Obtain releases. Some liens require formal release documents from the lienholder.

Correct errors. Recording errors may require affidavits or corrective documents.

Legal action. Serious disputes may require quiet title action in court, which takes time.

Working with the Title Company

The title company serves as a neutral third party that:

Holds earnest money. The earnest money deposit goes into their escrow account.

Conducts the title search. Researches ownership history and identifies issues.

Prepares documents. Creates closing documents including the deed.

Facilitates closing. Coordinates signatures, fund transfers, and recording.

Issues insurance. Provides the title insurance policy after closing.

Questions to Ask

Before closing, understand:

What does the title search show? Any liens, encumbrances, or issues?

What needs to be cleared? What must be resolved before closing?

What are the exact costs? Get a preliminary settlement statement showing title-related costs.

Where to Start

If you are selling your Las Vegas home and have questions about title insurance or potential title issues, I can help you understand the process and work with title companies to ensure a smooth closing.

Ready to discuss your sale? Request a free home evaluation here or reach out directly to talk through your options.

Frequently Asked Questions About Title Insurance for Las Vegas Sellers

Q1: Do I have to pay for title insurance as a Las Vegas seller?

Yes, in Nevada it's customary for the seller to pay for the owner's title insurance policy. This is a one-time premium paid at closing based on your home's sale price, typically ranging from $1,200-$2,000 depending on the property value.

Q2: What's the difference between owner's and lender's title insurance?

Owner's title insurance protects the buyer's ownership interest and is paid by the seller in Nevada. Lender's title insurance protects the mortgage lender's interest and is paid by the buyer when they're financing the purchase. Both policies are issued at closing.

Q3: How long does a title search take?

A typical title search takes 3-7 business days. The title company examines public records including deed records, mortgage records, tax records, court judgments, and HOA records to identify any issues that could affect the property's ownership.

Q4: What happens if the title search finds a lien on my property?

Any liens discovered must be paid off before or at closing. Most liens, such as tax liens or mechanic's liens, are paid directly from your sale proceeds at closing. Some liens may require formal release documents from the lienholder before the title can be cleared.

Q5: Can unpaid HOA dues prevent me from selling?

Unpaid HOA dues create a lien on your property that must be cleared before closing. These dues will typically be paid from your sale proceeds at closing, but they must be resolved for the title to transfer cleanly to the buyer.

Q6: Will outstanding permits show up on a title search?

Outstanding permits sometimes appear during title searches and may need to be resolved before closing. The title company will identify any permit issues, and you may need to either close out the permits or obtain proper documentation to clear the title.

Q7: What does title insurance actually cover?

Title insurance protects against defects in the property's ownership history, including undiscovered liens, ownership disputes, recording errors, fraud or forgery in previous transfers, encumbrances like easements, and claims from heirs or ex-spouses.

Q8: Can title issues delay my closing?

Yes, title issues can delay closing. Common problems include outstanding liens, open permits, unpaid HOA dues, boundary disputes, and incomplete estate documentation. Most issues can be resolved, but some may require additional time for legal documentation or court action.

Q9: Who chooses the title company?

In Nevada, the buyer typically has the right to choose the title company, though this can be negotiated. The title company serves as a neutral third party that holds earnest money, conducts the title search, prepares closing documents, and facilitates the entire closing process.

Q10: Is title insurance a recurring cost?

No, title insurance is a one-time premium paid at closing. Unlike homeowner's insurance, you don't pay annual premiums. The owner's policy protects the buyer for as long as they own the property, and rates are regulated by the state of Nevada.

Q11: What if I inherited the property I'm selling?

If you inherited your property, the title company will require proper probate documentation showing the legal transfer of ownership to you. This may include probate court orders, death certificates, and other estate documents to establish clear title.

Q12: Can I see the title search results before closing?

Yes, you should review the preliminary title report (also called a commitment) before closing. This document shows what the title search revealed, including any liens, encumbrances, or issues that need to be resolved. Ask your title company for this report and clarification on any concerns.