Buying your first home in Reno can feel like learning a new language. You want to make smart decisions, protect your money, and move in on time, but the terms and timelines can be confusing. This glossary breaks down key Reno and Washoe County terms in plain English, with local notes that explain how they play out in real offers and closings. You will learn what each term means, why it matters, and what to do next so you can move forward with confidence. Let’s dive in.
Reno real estate terms explained
Earnest money (EMD or deposit)
Your earnest money is a deposit you pay after your offer is accepted to show you are serious. It is held in escrow and applied to your purchase at closing if you complete the sale.
Why it matters: It signals commitment to the seller and can be at risk if you breach the contract and do not have a valid contingency to cancel.
Why this matters in Reno: In Washoe County, the escrow or title company typically holds earnest money. Many contracts here also include a separate due diligence fee, so make sure you know which funds are refundable and when.
Example: On a $500,000 home, a 1 to 3 percent earnest money deposit could be $5,000 to $15,000, depending on local competition and what you negotiate.
Due diligence fee and due diligence period
The due diligence fee is paid directly to the seller in many Nevada contracts to compensate them for taking the home off the market while you inspect and review information. The due diligence period is the window you have to investigate the property and decide to proceed.
Why it matters: This fee is separate from earnest money and is often non-refundable after the period ends. Your right to cancel and which funds are refundable are controlled by the contract.
Why this matters in Reno: Buyers and sellers commonly negotiate both an earnest money deposit and a due diligence fee. Due diligence periods are often 5 to 14 days in competitive markets. Put all deadlines on your calendar immediately.
Appraisal and appraisal gap
An appraisal is a lender-ordered estimate of the home’s value. An appraisal gap happens when the appraisal is lower than your contract price.
Why it matters: Lenders usually finance up to the appraised value. If the appraisal is low, you may renegotiate, bring extra cash, or cancel if your appraisal contingency allows it.
Why this matters in Reno: In competitive situations, sellers often want buyers to include appraisal gap coverage. You might pledge to pay a set amount above the appraised value or show cash to cover a potential gap.
Example: If you offer $500,000 and the appraisal is $480,000, the $20,000 difference is the appraisal gap.
Contingencies (inspection, financing, appraisal, title)
Contingencies are contract clauses that allow a party to cancel or require action if a condition is not met within a specific timeframe.
Why it matters: Contingencies protect you but can affect how strong your offer looks and how quickly the deal moves.
Why this matters in Reno: Common buyer contingencies include inspection, financing, appraisal, and clear title. Deadlines are negotiated in the purchase agreement and interact with your earnest money and due diligence fee.
Inspections
A licensed inspector reviews the property’s visible systems and structure. Many buyers add specialized inspections such as pest, roof, sewer scope, or HVAC.
Why it matters: Inspections help you uncover repair needs. You can ask for repairs or credits, or cancel if your contingency allows.
Why this matters in Reno: Northern Nevada winters, snow load, and freeze-thaw cycles mean roof, foundation, and crawlspace moisture checks are especially important. Schedule inspections quickly within your due diligence window.
Seller’s Property Disclosure
Sellers complete a written disclosure that lists known material facts and defects.
Why it matters: The disclosure is a key source of information about past issues, repairs, or conditions to watch.
Why this matters in Reno: Nevada requires written disclosure of known material defects. Review the disclosure as soon as you receive it and ask follow-up questions.
Title search, title insurance, and encumbrances
A title search verifies ownership and looks for liens, easements, and other recorded items. Title insurance protects against covered title defects.
Why it matters: Clear title is required to transfer the property. Liens or other encumbrances can delay or block closing.
Why this matters in Reno: Local title and escrow companies work with the Washoe County Recorder to confirm records. Expect your title commitment to highlight easements, CC&Rs, and any liens that must be cleared before closing.
Escrow and closing
Escrow is a neutral third party that holds funds and documents until the contract conditions are met. Closing is when you sign final documents, your lender funds the loan, and the deed records.
Why it matters: Escrow coordinates the flow of money, payoffs, prorations, and the recording of the deed. They also handle your earnest money.
Why this matters in Reno: Title and escrow companies handle closings in Nevada. Keys are typically released after confirmation of funding and recording with Washoe County.
HOA documents, CC&Rs, and rescission rights
HOA documents include CC&Rs, bylaws, budgets, rules, and meeting minutes. They set community standards and costs.
Why it matters: HOA rules affect how you can use the property and what you will pay monthly or in special assessments.
Why this matters in Reno: Nevada’s common-interest community law governs HOAs. Sellers usually provide the HOA package, and buyers often have a statutory window to review and cancel after they receive it. Read the budget and reserve study carefully.
“As-is” sale
“As-is” means the seller does not plan to make repairs. They still must disclose known defects.
Why it matters: You may have less leverage on repairs, but you still have the right to inspect and make informed choices.
Why this matters in Reno: Even in an as-is sale, thorough inspections are essential. Clarify what remedies you have if inspections reveal costly issues.
Closing costs, prorations, and prepaid items
Closing costs include lender fees, title and escrow fees, recording fees, and HOA transfer fees. Prorations split costs like property taxes between buyer and seller. Prepaids cover items such as homeowners insurance collected upfront by your lender.
Why it matters: You need to budget for more than the down payment. These costs can add up to several thousand dollars.
Why this matters in Reno: Washoe County recording and local HOA transfer fees vary. Ask your lender and your escrow officer for estimates early in the process.
Loan types, down payment, and PMI
Conventional, FHA, VA, and USDA loans have different requirements. PMI is private mortgage insurance for many low down payment conventional loans.
Why it matters: Your loan type affects down payment, appraisal standards, and repair negotiations.
Why this matters in Reno: VA loans are popular for qualifying buyers. FHA appraisals may call out more condition items, which can influence how you negotiate repairs.
Title vesting and community property
Title vesting describes how you hold ownership. Nevada is a community property state, which can affect how married buyers take title and how both spouses may need to sign.
Why it matters: Vesting can affect rights, taxes, and inheritance.
Why this matters in Reno: Ask your title officer or an attorney about vesting options before closing so your deed matches your goals.
From offer to closing: what to expect
- Write the offer. You and your agent set price, earnest money amount, due diligence fee, due diligence period length, and contingencies for inspection, appraisal, financing, and title. Clarify who will hold earnest money and the deposit timeline.
- Enter due diligence. Order inspections, review the seller’s disclosure, and read the HOA package if applicable. Track all deadlines. Typical due diligence windows are 5 to 14 days in competitive markets, but this is negotiated.
- Negotiate repairs or credits. After you receive inspection reports, request fixes or credits. The seller can accept, counter, or refuse. If you cancel under a valid contingency before the deadline, refund rules for deposits follow the contract.
- Appraisal and loan approval. Your lender orders the appraisal. If it is low, you may cover the gap in cash, renegotiate, or cancel if an appraisal contingency applies. If financing fails and you have a financing contingency, you can usually cancel within that timeline.
- Title and escrow. The title company issues a title commitment and coordinates payoffs, prorations, and your final Closing Disclosure. Review all items, including recording and HOA fees.
- Closing and keys. You sign, the lender funds, and the deed records with Washoe County. Once recording is confirmed, you get keys.
Common pitfalls to avoid
- Mixing up earnest money and the due diligence fee. They are different and may have different refund rules.
- Skipping the HOA packet. Fees, rules, and reserves can affect your budget and plans.
- Forgetting about closing costs and prepaids. Budget beyond your down payment, and plan for a possible appraisal gap.
- Waiting to schedule inspections. Short due diligence windows move fast in Reno.
- Assuming “as-is” means no disclosures. Sellers must still disclose known defects.
Quick buyer checklist
- Confirm who holds earnest money and when it must be deposited.
- Identify if your offer includes a due diligence fee and confirm refundability rules in the contract.
- Put all due diligence and contingency deadlines on your calendar.
- Order a general home inspection plus targeted inspections fast.
- Request and review the seller’s disclosure and the HOA packet immediately.
- Confirm appraisal contingency language and any appraisal gap coverage you offered.
- Get a written Loan Estimate from your lender and fee estimates from escrow for title and recording.
- Ask your agent for local comparable sales if you are unsure about price and appraisal risk.
Where to verify details and stay current
- Local market reports and listing data are available from the Reno-Sparks Association of REALTORS (accessed November 2025) for context on competition and timelines.
- Forms, licensing rules, and consumer resources are published by the Nevada Real Estate Division (accessed November 2025).
- HOA rules and buyer rights are set by Nevada law. Review NRS Chapter 116 on common-interest communities (accessed November 2025) or consult an attorney for legal questions.
- Public records, deeds, and recording details are handled by the Washoe County Recorder and parcel data by the Washoe County Assessor (accessed November 2025).
- For national mortgage disclosures and closing guidance, see the Consumer Financial Protection Bureau (accessed November 2025).
If you are unsure about any deadline or refund rule, rely on your signed contract and ask your agent, lender, or title officer to clarify in writing. For deed vesting or complex disclosure questions, consider consulting a Nevada real estate attorney.
Ready to take your next step in Reno with a clear plan and strong negotiation strategy? Reach out for guidance tailored to your budget, timeline, and goals. Connect with Unknown Company to request a private consultation.
FAQs
What is the difference between earnest money and a due diligence fee in Reno?
- Earnest money is held in escrow and credited at closing. A due diligence fee is often paid directly to the seller and may be non-refundable after the due diligence period. Your contract controls both.
How long is a typical due diligence period for Reno homes?
- In competitive markets, many buyers negotiate 5 to 14 days. Always confirm exact deadlines in your contract and schedule inspections immediately.
What happens if the appraisal comes in low on my Reno purchase?
- You can renegotiate price, bring extra cash to cover the gap, or cancel if your appraisal contingency allows. Lenders usually finance up to the appraised value.
Can I cancel after inspections in Washoe County?
- Yes if you are within your inspection contingency or due diligence window and your contract permits cancellation. Outside those protections, you risk losing deposits.
Who handles my closing and recording in Washoe County?
- A title and escrow company coordinates closing and recording. The deed records with the Washoe County Recorder, and keys are usually released after confirmation of funding and recording.
How do I evaluate an HOA in the Reno area?
- Read the HOA budget, reserve study, meeting minutes, and rules. Watch for low reserves, frequent special assessments, or restrictions that do not match your plans.
