Contracts
In Nevada, earnest money in a real estate transaction is:
ARequired by law to be at least 1% of the purchase price
BA form of consideration that demonstrates the buyer's good faith✓ Correct
CAutomatically forfeited if the buyer fails to close
DPaid directly to the seller at time of offer
Explanation
Earnest money (also called a good faith deposit) demonstrates the buyer's serious intent. While there is no statutory minimum in Nevada, it serves as consideration supporting the contract and is held in trust by the broker or escrow.
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