Detailed Answer — How Wyoming law treats release of funds when a deed is not yet recorded

In Wyoming, the legal transfer of real property and the practical protection of the buyer’s interest are two related but distinct concepts. A deed, properly signed and delivered, can transfer title at the time of delivery. Recording the deed in the county recorder’s office is not always required to make the transfer effective between the parties. However, recording is critical because it provides public (constructive) notice to third parties and affects priority against later purchasers or creditors.

Because recording affects priority and notice, most closings use an escrow or trust arrangement (funds held by a title company, escrow agent, or attorney) to make sure the buyer’s money is only released when the deed has been properly delivered and recorded or other closing conditions are satisfied. Releasing funds from escrow before the deed is recorded can be done, but it raises risk. The escrow agent’s obligations are governed by the escrow instructions, the contract between buyer and seller, and applicable state and local practices.

Key legal and practical points you should know:

• Title transfer vs. recording: In Wyoming, a deed that has been validly executed and delivered generally transfers title between the grantor and grantee even before recording. But until recorded, the buyer’s interest may not be protected against subsequent buyers or creditors who rely on the public record.
• Priority and constructive notice: Recording provides constructive notice to the world. If a buyer’s deed is not recorded and a third party later obtains an interest that is recorded, that third party may have priority depending on the facts.
• Escrow instructions control release: The escrow or trust agent typically follows written instructions signed by the parties. If the escrow instructions require recorded deed as a condition precedent to releasing funds, the agent must not disburse until the condition is met.
• Title company and insurance practices: Title companies commonly withhold funds until the deed is recorded or will issue a short-term commitment or endorsement guaranteeing that recording will be completed and protecting the buyer through title insurance. Such protections reduce but do not eliminate risk if funds are released prematurely.
• Risk if funds are released early: If escrow releases funds before the deed is recorded and a problem appears (for example, undisclosed liens, intervening purchaser, forgery, or other title defect), it can be more difficult for the buyer to recover. The buyer’s remedies may depend on title insurance, contractual indemnities, or litigation against the seller or escrow agent.

Typical safe practices used in Wyoming closings:

• Require the escrow agent to record the deed and obtain a recording receipt or stamped copy before releasing funds.
• Use a short escrow holdback clause that authorizes disbursement only after the county recorder confirms recording or after the buyer’s title insurer issues an endorsement.
• If immediate disbursement is requested, obtain written, express consent from the buyer accepting the risk and confirming the specific reason for early release.
• Rely on a reputable title company that issues an owner’s title insurance policy that covers unrecorded recording issues and provides post-closing protection.

Where to look in Wyoming law and practice: Wyoming’s recording statutes create the public-record system that governs notice and priority. For state statutes and to learn more about recording rules, see the Wyoming Legislature website: https://wyoleg.gov. For specific county recording procedures, contact the county recorder where the property is located.

Bottom line: Funds held in trust or escrow can be released before a deed is recorded only if the parties (and the escrow agent) agree to do so and the release complies with the escrow instructions and any title company or lender requirements. Doing so increases risk to the buyer unless there are contractual protections (such as an enforceable escrow release, title insurance endorsements, or other written assurances). When in doubt, require recording (or obtain a recording certificate) before disbursing funds.

This is general information about Wyoming law and is not legal advice. For specific guidance about your transaction, contact a Wyoming real estate attorney or your title company.

Helpful Hints — Practical steps to protect yourself in Wyoming closings

• Insist on escrow instructions that explicitly list “recording of deed” as a condition precedent to disbursement unless you accept the risks in writing.
• Ask your title company to provide a stamped recording receipt or a certified copy of the recorded deed before funds move.
• Obtain owner’s title insurance and consider an endorsement that covers delayed recording or similar risks.
• Confirm with the county recorder’s office (or their online index) that recording has occurred—county recorders vary by county in processing times and procedures.
• If a lender is involved, follow lender requirements: most lenders will not allow disbursement of loan proceeds until recording is confirmed.
• If a seller requests a quick payout, require a written escrow release that allocates responsibility for later problems and consider a short escrow holdback for any unresolved items.
• When problems arise after disbursement, contact your title insurer immediately and consult a Wyoming real estate attorney to discuss remedies.