Nevada Preliminary Title Report: What Real Estate Agents Need to Know
Quick Answer: A Nevada preliminary title report is a document issued by a title company before closing. It shows current ownership, recorded liens, and encumbrances on a property. It contains Schedule A (ownership and legal description) and Schedule B (requirements to clear and exceptions to coverage). Real estate agents should review the Nevada preliminary title report as soon as it arrives during the inspection period, because Schedule B determines what the title policy will and will not cover.
What Is a Nevada Preliminary Title Report? A Complete Guide for Agents
Every Nevada real estate transaction produces a Nevada preliminary title report. However, many agents pass it to their client without fully reading it first. Specifically, the Nevada preliminary title report shows who owns the property and what liens are recorded against it. It also shows what conditions the title company must satisfy before issuing insurance. Indeed, understanding it puts agents ahead of potential closing problems.
Nevada title insurance operates under NRS Chapter 692A, which governs how title companies must operate statewide. Furthermore, the Nevada Division of Insurance regulates all title insurers in Nevada. The Nevada preliminary title report is not the insurance policy itself. Instead, it is the title company’s commitment to issue a policy once all conditions are cleared. That distinction matters because conditions can change between the report and closing.
At 805 Title Nevada, we issue a Nevada preliminary title report on every transaction we handle across the state. Furthermore, our escrow officers explain every item to agents and buyers so nothing gets overlooked.
How to Read a Nevada Preliminary Title Report: Schedule A and Schedule B
The Nevada preliminary title report has two main sections. Specifically, each section serves a distinct purpose. Agents who understand both sections protect their clients at every stage of the transaction.
Schedule A: Vesting, Legal Description, and Coverage
Schedule A is the confirmation section. Specifically, it tells you who holds title and how. Additionally, it identifies the property’s legal description and the proposed insurance amounts.
Specifically, Schedule A covers:
- Vesting: How title is currently held. In Nevada, common forms include joint tenancy, community property with right of survivorship, a revocable living trust, or an LLC. If the seller’s name on the contract does not match the vested owner, that discrepancy must be resolved before closing.
- Legal description: The official boundary description of the parcel. Also, confirm it matches the property’s address and assessor parcel number.
- Effective date: The title search is current through this date only. A final update runs shortly before recording to catch any new filings.
Consequently, agents should verify that the names, APN, and legal description in Schedule A match the purchase contract and MLS listing.
Schedule B, Part I: Requirements That Must Be Cleared
Part I of Schedule B lists everything the title company requires before it will issue the policy. These are not permanent limitations. Rather, they are tasks to complete during escrow. Common requirements include payoff of existing deeds of trust, release of judgment liens, and clearance of mechanic’s liens. Indeed, a long Part I list signals that escrow will require active coordination between the seller, escrow officer, and any lienholders.
Agents who spot significant Part I items early should alert the escrow officer immediately. Moreover, confirming that those items are resolvable within the escrow timeline prevents last-minute surprises.
Schedule B, Part II: Permanent Exceptions to Coverage
Part II is the most important section for agents to understand. These are the items the title insurance policy will not cover. Furthermore, they remain on the property even after closing. Buyers who do not review Part II exceptions before the inspection period expires may discover restrictions or encumbrances they did not expect.
Common Schedule B Part II exceptions in Nevada include:
- Recorded CC&Rs from the homeowner association
- Utility and drainage easements
- Mineral rights reservations
- Property tax installments not yet due
- Any facts a survey or physical inspection would reveal
What Nevada Real Estate Agents Should Flag in Every Prelim
Nevada has specific property issues that appear in preliminary title reports more often than agents expect. Knowing what to look for saves closings.
HOA Liens and CC&Rs in Nevada Communities
Nevada has more than 3,000 homeowners associations statewide. Under NRS 116.3116, delinquent HOA assessments can hold super-priority lien status. That means they rank ahead of even a first mortgage in certain situations. The Nevada Supreme Court confirmed this in the 2014 SFR Investments ruling. Therefore, when CC&Rs or HOA documents appear in Schedule B, agents should confirm with the escrow officer whether any delinquent assessments are also listed in Part I. Those must be paid before closing to protect the buyer’s title.
Additionally, the CC&R documents listed in Part II tell buyers what restrictions govern the property. These rules cover rental restrictions, exterior modification approvals, and pet policies. Reviewing them before the inspection period ends gives buyers a chance to object or negotiate.
Mineral Rights Reservations in Nevada Properties
Nevada has a long mining history. As a result, mineral rights reservations appear frequently in Schedule B for properties across the state. In most residential transactions, an active mining interest on a single-family lot is unlikely to cause problems. However, confirming this with the escrow officer adds a professional layer of protection for the buyer.
Unreleased Liens and Judgment Liens
Occasionally, a title search reveals a lien from a prior owner that was never formally released. In those situations, the escrow officer works to obtain a release before issuing the policy. Furthermore, judgment liens from court actions against a current owner can surprise sellers who believed their record was clean. Agents who flag these items early give the escrow team maximum time to resolve them.
Lis Pendens: Pending Litigation on the Property
A lis pendens signals active litigation affecting title. Examples include foreclosure actions, boundary disputes, or partition suits. Moreover, a property with an unresolved lis pendens may not be insurable until the litigation concludes. Agents should flag any lis pendens immediately and advise clients accordingly before they commit to the transaction.
How the Nevada Preliminary Title Report Shapes the Title Policy
The Nevada preliminary title report is the direct foundation of the final title insurance policy. Items cleared in Schedule B Part I become the satisfied conditions that allow the policy to issue. Items listed in Part II become the permanent exceptions written into the final policy.
Consequently, buyers who skip the prelim review may find later that a specific risk is not covered. For instance, an easement that blocks a planned structure or a CC&R that prevents short-term rentals would appear in Part II. Buyers who catch those items during the inspection period can object, negotiate, or walk away. Buyers who miss them have fewer options after closing.
At 805 Title Nevada, we encourage agents to call us immediately when anything in the Nevada preliminary title report looks unfamiliar. Indeed, walking through the report with an experienced escrow officer is one of the most valuable steps in any Nevada transaction.
Your Internal Nevada Title Resources
For more detail on Nevada title insurance, visit our Nevada title insurance page or learn how our Nevada escrow process works. You can also review Nevada closing costs in detail and explore our services for Nevada real estate agents.
Frequently Asked Questions About the Nevada Preliminary Title Report
What is a Nevada preliminary title report?
A Nevada preliminary title report is a document issued by a title company before closing. It shows the current owner, recorded liens, and encumbrances on a property. It is not the title insurance policy. Instead, it is the title company’s commitment to issue a policy once all conditions listed in Schedule B Part I are satisfied.
When do real estate agents receive the Nevada preliminary title report?
Nevada title companies typically issue the Nevada preliminary title report within two to five business days after escrow opens. Agents and buyers receive it during the inspection period. Consequently, reviewing it promptly gives buyers time to raise objections before their contingencies expire.
What is Schedule B in a Nevada preliminary title report?
Schedule B has two parts. Part I lists requirements the title company must clear before issuing the policy, such as existing loan payoffs and lien releases. Part II lists permanent exceptions — items the policy will not cover. Common Part II exceptions in Nevada include HOA CC&Rs, easements, and mineral rights reservations.
What should Nevada real estate agents flag in a preliminary title report?
Nevada agents should specifically watch for HOA delinquencies (because NRS 116.3116 gives HOAs super-priority lien rights), CC&R restrictions on property use, mineral rights reservations, unreleased liens from prior owners, and any lis pendens indicating active litigation. Moreover, flagging these items to the escrow officer early reduces the risk of closing delays.
How does the Nevada preliminary title report affect the title insurance policy?
The items cleared in Schedule B Part I become the satisfied conditions that allow the final policy to issue. The items in Schedule B Part II become the permanent exceptions in the final owner’s policy. Therefore, reviewing Schedule B exceptions before closing is essential to understanding exactly what the owner’s title insurance covers.
How long does it take to get a Nevada preliminary title report?
Most Nevada title companies issue the Nevada preliminary title report within two to five business days after the title order is placed. At 805 Title Nevada, we prioritize fast turnaround so agents and clients have the full inspection period to review the findings.
Work With a Nevada-Licensed Title and Escrow Company
At 805 Title Nevada, we are a Nevada-licensed title and escrow company serving buyers, sellers, and real estate agents across the entire state of Nevada. Our team serves buyers, sellers, and agents across Nevada, from Las Vegas and Clark County to Henderson and Reno. We issue the Nevada preliminary title report, explain every finding, and handle the full escrow process with precision.
Agents who review the Nevada preliminary title report carefully and communicate early with their escrow officer protect their clients and close with confidence. Additionally, that expertise sets you apart as a trusted resource for buyers and sellers in every market.
Ready to Open Your Next Nevada Transaction?
Explore our services for Nevada real estate agents or learn how we support Nevada homebuyers. You can also order title and escrow services when you are ready to open a new transaction. Whether you are a buyer, seller, or Nevada real estate agent looking for a reliable title and escrow partner, our team is ready to help. Let’s connect.
Nevada Regulatory Resources
For regulatory guidance, visit the Nevada Division of Insurance or the Nevada Land Title Association (NLTA).