Contracts
Under Nevada law, what happens to earnest money if a buyer defaults on a purchase contract?
AIt is always returned to the buyer
BIt is split equally between buyer and seller
CIt is forfeited to the seller as liquidated damages, per contract terms✓ Correct
DIt must be deposited with the Nevada Real Estate Division
Explanation
When a buyer defaults on a Nevada real estate contract, the earnest money is typically forfeited to the seller as liquidated damages, as specified in the contract. The exact disposition depends on the contract language.
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