Contracts
What is 'earnest money' and what factors determine how much is appropriate in a Nevada transaction?
AEarnest money is a fixed 3% of the purchase price in Nevada
BEarnest money is a good-faith deposit demonstrating the buyer's serious intent — the appropriate amount depends on local custom, the purchase price, market competitiveness, and buyer/seller negotiation; in Nevada, 1-3% of purchase price is common✓ Correct
CNevada law requires a minimum $10,000 earnest money deposit
DEarnest money is only required for new construction in Nevada
Explanation
Earnest money in Nevada is a negotiated amount — Nevada law has no fixed minimum or maximum. Typical amounts range from 1-3% of the purchase price.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Closing CostsFees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
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