Earnest money in Nevada must be:
Question & Answer
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Held by seller
Sellers cannot directly hold earnest money in Nevada. This would create a conflict of interest and violate state regulations designed to protect buyers' funds.
Deposited in trust account per contract or law
Given to buyer
Giving earnest money to the buyer defeats its purpose as evidence of good faith and commitment to the purchase agreement.
No requirements
Nevada has specific requirements for handling earnest money, mandating deposit in a trust account per contract or law.
Why is this correct?
Nevada law requires earnest money to be deposited in a trust account as specified in the contract or by state regulations. This protects all parties by preventing commingling of funds and ensuring proper handling of the buyer's deposit.
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