Escrow & Title
What is earnest money and how is it treated in Nevada?
AA non-refundable deposit paid directly to the seller
BA good-faith deposit paid by the buyer, held in escrow, applied toward the purchase price at closing or returned/forfeited according to the contract if the deal does not close✓ Correct
CA government-required deposit for all Nevada purchases
DA deposit paid to the listing agent as compensation
Explanation
Earnest money is the buyer's good-faith deposit demonstrating serious intent to purchase. In Nevada, it is held in a neutral escrow account. At closing, it is credited toward the purchase price. If the buyer defaults, it may be forfeited to the seller. If a contingency is not met, it is typically returned to the buyer.
Related Nevada Escrow & Title Questions
- What is a title guarantee versus title insurance in Nevada?
- What is a 'subordination clause' in a Nevada commercial lease?
- What is a 'preliminary title report' (prelim) in a Nevada transaction?
- What does 'ALTA title insurance' provide that a standard policy does not?
- In Nevada, the seller typically pays which of the following closing costs?
- What is a quitclaim deed used for in Nevada real estate?
- What is a 'release of lien' and when is it needed in Nevada?
- What is a Nevada 'escrow instructions amendment' and when is it used?
Practice More Nevada Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Nevada Quiz →