Can You Sell a House Before Paying It Off

Can you sell a house before paying it off in Nevada? Yes—many homeowners in Reno, Sparks, Carson City, Dayton, Fernley, Fallon, Minden, Genoa, Gardnerville, Moundhouse, Sun Valley, Silver Springs, Stagecoach, Silver City, Virginia City, and Verdi do it every year. Most mortgages include a “due-on-sale” clause. That clause means your loan must be paid off when you sell or transfer the property. In a normal sale, the buyer’s funds flow through escrow to your lender on closing day, your lien is released, and the deed is recorded in the buyer’s name. You do not have to pay off the loan before you list the home—payoff happens at closing.

How selling with a mortgage works in Nevada

Here’s the simple overview you can expect when selling a home or house with a balance still due:

  1. Hire a local Nevada Real Estate Agent (Realtor). Choose experience in your city—Reno, Sparks, Carson City, Dayton, Fernley, Fallon, Minden, Genoa, Gardnerville, Moundhouse, Sun Valley, Silver Springs, Stagecoach, Silver City, Virginia City, or Verdi.
  2. Request a mortgage payoff statement. Your lender issues a written payoff that includes principal, per-day interest through the chosen payoff date, and any fees.
  3. Open escrow with a Nevada title company. Escrow collects buyer funds, pays your lender, pays required taxes and fees, and records documents.
  4. Loan is paid and the lien is released. After payoff, the trustee records a deed of reconveyance (for deeds of trust) to release the lien so title transfers cleanly.
  5. You receive your net proceeds. Whatever remains after payoff and closing costs is sent to you by escrow.

What’s in a Nevada mortgage payoff?

A payoff quote is different from the balance on your last statement. It is calculated for a specific date and usually includes:

  • Remaining principal
  • Daily (per diem) interest through the payoff date
  • Any unpaid fees or charges in your loan terms (for example, a rare prepayment penalty—check your note)

Your escrow officer requests the payoff from your lender and coordinates timing so interest stops on the date of closing.

Why escrow and title matter in Nevada

Nevada is an escrow state. A neutral escrow officer holds funds and documents and only releases them when all contract terms are met. The title company issues insurance to the buyer and their lender and makes sure your mortgage is paid off, taxes are handled, and documents are recorded with the county recorder. For more info, review the Nevada State Bar’s escrow & title guide.

About the due-on-sale clause

Most loans have a due-on-sale (also called due-on-transfer) clause. That clause lets your lender require full payoff when you sell or transfer the property. Some transfers—such as certain transfers to a living trust where you remain the beneficiary, or transfers to a spouse, or transfers due to death—have federal protections. For a normal sale in Reno, Sparks, Carson City, or any Nevada market, expect the loan to be paid in full at closing.

Seller costs you should expect

Your exact costs vary by contract and county, but typical seller costs in Nevada include:

  • Mortgage payoff (principal + interest + any lender fees)
  • Title and escrow fees
  • Real Property Transfer Tax (RPTT) collected by the county recorder at recording
  • Real estate compensation you negotiate with your listing broker (and any buyer-broker compensation if you agree)
  • Prorations for property taxes, HOA dues, or utilities, as applicable
  • Repairs and credits you agree to during negotiations

Nevada’s Real Property Transfer Tax (RPTT)

At recording, Nevada collects a state transfer tax under NRS 375. The general statewide rate is $1.95 per $500 of value, with certain county additions. For details, see the Nevada Department of Taxation’s Real Property Transfer Tax page. In Washoe County (Reno, Sparks, Verdi), the rate is $2.05 per $500 Washoe County recording guide.

What if you owe more than the home is worth?

If your outstanding loan is higher than your likely sale price in places like Silver Springs, Stagecoach, Virginia City, or Silver City, you have options:

  1. Bring cash to close. Cover the gap so the loan is paid in full.
  2. Negotiate a short sale. With lender approval, you may sell for less than you owe. Ask about a deficiency waiver in writing so you are not pursued later.
  3. Wait and build equity. If your timeline allows, watch the local real estate market and revisit when values support your goals.

Short sales require lender approval and can take more time than a standard sale. Rules about deficiencies (the difference between what you owe and the sale price) are specific. In Nevada, deficiency rights after a short sale depend on the agreement—get advice from a Nevada attorney if you’re considering this route.

Choosing your pricing and timing

Pricing depends on recent comparable sales and current demand in your city. Homes in Reno and Sparks may see different timelines than homes in Gardnerville, Minden, Genoa, Carson City, or Dayton. Seasonal trends and inventory can also affect days on market. A local Realtor will use data to set expectations and help you plan your move, especially if you’re also buying your next home in Northern Nevada.

Step-by-step: Selling a Nevada home before it’s paid off

1) Connect with a trusted Nevada Realtor

Interview Real Estate Agents with strong Northern Nevada experience—from Fernley and Fallon to Verdi and Sun Valley. Ask about marketing strategy, communication, and how they coordinate with escrow and your lender.

2) Order your payoff early

Ask your lender for a written payoff quote as soon as you plan to list. Payoffs are date-sensitive; interest accrues daily until the loan is paid. Your escrow officer will request an updated payoff close to your closing date.

3) Prepare the property

  • Handle safety and basic maintenance items first.
  • Declutter, deep clean, and improve curb appeal.
  • Address simple repairs that could slow down the buyer’s loan or appraisal.

4) List, show, and review offers

Your agent will market in your city (Reno, Sparks, Carson City, Dayton, Fernley, Fallon, Minden, Genoa, Gardnerville, Moundhouse, Sun Valley, Silver Springs, Stagecoach, Silver City, Virginia City, Verdi) and help you compare offers beyond just price—financing type, contingencies, timelines, and buyer requests.

5) Escrow and inspections

Once in escrow, buyer inspections and appraisals are scheduled. You and your agent can negotiate repairs or credits. Your escrow officer coordinates payoffs, taxes, and recording. Understand the standard escrow process in Nevada.

6) Closing day

On closing, buyer funds are used to pay off your lender. The deed and any lien releases are recorded with the county, and your net proceeds are disbursed.

Frequently asked questions from Nevada sellers

Do I need to pay off my loan before I list?

No. In a standard Nevada sale, your loan is paid at closing from the buyer’s funds held in escrow.

What if my mortgage has a prepayment penalty?

Prepayment penalties are uncommon today, but some loans still have them. Check your note and payoff quote. Your escrow officer will include any fee in the payoff.

Can the buyer assume my loan?

Most conventional loans include a due-on-sale clause, so they are not assumable without lender consent. Some government-backed loans (like certain FHA or VA loans) may be assumable subject to program rules and lender approval.

What proves my lien is released?

After payoff of a Nevada deed of trust, the trustee records a deed of reconveyance. This shows the lien was released so the buyer receives clear title.

Who pays agent compensation now?

Compensation is not set by law and is negotiated in writing between you and your Real Estate Agent (and, separately, buyers may agree how their agent is paid). Your Craig Team Realty listing agreement will explain your options clearly.

Local notes by area

  • Reno, Sparks, Verdi, Sun Valley (Washoe County): Expect the county to collect RPTT at recording; the current rate in Washoe County is $2.05 per $500 of value.
  • Carson City, Minden, Gardnerville, Genoa, Dayton, Moundhouse, Silver Springs, Stagecoach, Silver City, Virginia City, Fernley, Fallon: Counties outside Washoe use the statewide base rate unless a local add-on applies. Your escrow team will calculate the exact amount.

What Craig Team Realty at eXp does for you

  • Local pricing strategy for each city and neighborhood you serve.
  • Clear net sheets so you see estimated payoff, fees, and potential proceeds before you list.
  • Coordination with your lender and the title/escrow company for accurate, on-time payoffs.
  • Ethical, transparent service that follows Nevada law and the REALTOR® Code of Ethics.

Ready to talk through your numbers?

If you’re weighing the choice to sell a home before it’s paid off in Northern Nevada—from Reno and Sparks to Carson City, Dayton, Fernley, Fallon, Minden, Genoa, Gardnerville, Moundhouse, Sun Valley, Silver Springs, Stagecoach, Silver City, Virginia City, and Verdi—Craig Team Realty at eXp is here to help you plan with confidence. We’ll explain the process, coordinate your payoff, and keep your sale on track. Call (775) 306-7591 to connect with Cassie Craig and the Craig Team Realty professionals.

Important note

This article is general information for Nevada real estate only. It is not legal, tax, or financial advice. For questions about short sales, deficiencies, or your loan terms, consult a qualified Nevada attorney, tax professional, or your lender.