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Earnest money in Nevada must be:

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Question & Answer

Review the question and all answer choices

A

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.

B

Deposited in trust account per contract or law

Correct Answer
C

Given to buyer

Giving earnest money to the buyer defeats its purpose as evidence of good faith and commitment to the purchase agreement.

D

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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