Contracts
What is the 'earnest money dispute resolution' process in Nevada when buyer and seller disagree on who should receive the earnest money?
AThe escrow company automatically keeps the earnest money as a fee
BThe escrow/title company typically holds the earnest money until receiving a written mutual release or court order directing disbursement✓ Correct
CThe listing agent decides who receives the earnest money
DNevada law requires automatic return to the buyer if both parties disagree
Explanation
When earnest money is disputed in Nevada, the escrow or title company holding the funds is in an interpleader position — they cannot release funds unilaterally without risk of liability. They typically hold the deposit until receiving either: (1) a written agreement signed by both buyer and seller directing disbursement, or (2) a court order.
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