Nevada Escrow & Title
Practice Questions & Answers (2026)
Escrow, title, and closing questions on the Nevada exam test how real estate transactions are closed, how title is transferred, and what happens at settlement. Nevada uses title companies or settlement agents to handle closings, and candidates must understand the closing process, settlement statement, and title insurance requirements under Nevada law. Title insurance, title searches, and the difference between standard and extended coverage policies are tested, as are the specific closing costs that are customarily paid by buyers vs. sellers under Nevada practice.
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Nevada Escrow & Title — Practice Questions & Answers
123 questions on Escrow & Title from the Nevada real estate question bank. First 10 are free — sign up to unlock all 123.
Q1. In Nevada, the foreclosure process under a deed of trust is primarily:
Explanation
Because Nevada predominantly uses deeds of trust rather than mortgages, the typical foreclosure method is a non-judicial trustee's sale, which is generally faster than court-supervised judicial foreclosure.
Q2. A CLTA (California Land Title Association) owner's policy versus an ALTA (American Land Title Association) extended policy — in Nevada, a lender typically requires:
Explanation
Lenders in Nevada typically require an ALTA extended coverage lender's title insurance policy, which offers broader protection than a standard CLTA policy, covering survey matters and off-record risks.
Q3. Escrow instructions in a Nevada real estate transaction:
Explanation
Escrow instructions are the written directions from the buyer and seller (and lender) to the escrow holder specifying the conditions that must be met and how funds and documents are to be handled at closing.
Q4. A lis pendens recorded against a property provides notice that:
Explanation
A lis pendens (Latin for 'suit pending') is a recorded notice warning potential buyers and lenders that there is a pending legal action that may affect the title to or ownership of the property.
Q5. In Nevada, escrow is typically handled by:
Explanation
In Nevada, escrow is typically handled by an independent title company or escrow company that serves as a neutral third party to ensure all conditions of the sale are met before funds and title are transferred.
Q6. A title insurance policy that protects the buyer against defects in title is called a(n):
Explanation
An owner's (fee) policy protects the buyer's ownership interest against title defects, liens, encumbrances, or fraud that existed prior to closing. A lender's policy protects only the lender's interest and does not protect the buyer.
Q7. A 'cloud on title' in Nevada refers to:
Explanation
A cloud on title is any outstanding claim, lien, encumbrance, or irregularity that may cast doubt on the validity of ownership. Clouds must be resolved before a clean title can be conveyed.
Q8. In Nevada, which document transfers title of real property from seller to buyer at closing?
Explanation
A deed is the legal instrument that transfers ownership (title) of real property from the grantor (seller) to the grantee (buyer). The deed must be delivered and accepted to be effective.
Q9. RESPA (Real Estate Settlement Procedures Act) requires lenders to provide buyers with a Closing Disclosure at least how many business days before closing?
Explanation
Under TRID (the TILA-RESPA Integrated Disclosure Rule), lenders must provide the Closing Disclosure to buyers at least 3 business days before closing so buyers have time to review final loan terms and costs.
Q10. Proration of property taxes in a Nevada closing typically means:
Explanation
In a proration, expenses like property taxes are divided proportionally between buyer and seller based on ownership periods. The seller pays taxes through the closing date; the buyer is responsible from closing forward.
Q11. A Nevada title search examines public records to verify:
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