Nevada License Law
What must a Nevada broker do when a salesperson associated with their firm receives an earnest money deposit?
AAllow the salesperson to hold the funds in their personal account
BEnsure the funds are deposited into the broker's trust account within the time frame required by law and the purchase agreement✓ Correct
CReturn the funds to the buyer pending offer acceptance
DSubmit the funds to NRED for safekeeping
Explanation
Under NRS 645, brokers are responsible for all trust funds handled by their affiliated licensees. Earnest money must be deposited into the broker's trust account in a timely manner — typically within one to three business days as specified in the purchase agreement.
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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.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
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.
Deed of TrustA security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
Math Concepts
State-Specific Concepts
Trust Account RulesEscrow Disputes
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