Contracts
What is the purpose of an earnest money deposit in a Nevada real estate transaction?
ATo pay the agent's commission at the time of the offer
BTo demonstrate the buyer's good faith and create consideration for the contract✓ Correct
CTo cover the closing costs at settlement
DTo guarantee the seller will not accept other offers
Explanation
Earnest money demonstrates the buyer's good faith and intention to complete the purchase. It is held in trust (escrow) and applied toward the purchase price at closing.
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