What Is Earnest Money in Nevada, and Do You Get It Back?

Short answer: Earnest money is a cash deposit you put down when your offer on a house is accepted, to show the seller you are serious about buying. In Nevada, a real estate broker who receives it must put it in a trust account, usually by the end of the next banking day, unless your purchase agreement says otherwise. When the sale closes, it counts toward your down payment and closing costs. Whether you get it back if the deal falls apart depends on the terms and contingencies in your contract.

Jennifer Rodriguez is a Realtor® and Military Relocation Professional (MRP®) in Northwest Las Vegas helping military families buy with a VA loan.

Earnest money is usually the first real money you hand over when you buy a home. That makes people nervous, and it should get your attention. Here is what it is, who holds it, and what decides whether it comes back to you.

What is earnest money when buying a house?

Earnest money is a deposit that shows the seller you mean it. VA's Buyer's Guide describes it as a cash deposit used to hold a home you are bidding on, one that shows you are serious about purchasing that home.

It is not an extra fee on top of the price. It is part of your money for the purchase, paid early. You and the seller agree on the amount in the purchase agreement, along with the rules for what happens to it.

Do you have to put down earnest money with a VA loan?

VA does not require it. VA's Buyer's Guide lists the earnest money deposit as optional, and it lists earnest money as one of the items you can negotiate with the seller.

Here is what most people don't realize. Optional for VA does not mean optional for the seller. A seller can weigh an offer with earnest money differently than one without it. Whether to include it, and how much, is a strategy conversation to have before you write the offer.

Who holds earnest money in Nevada?

Not the seller. Nevada law, NRS 645.310, says that when a real estate broker receives money that belongs to others, the broker must deposit it in a separate trust account at a bank or credit union in Nevada. The law names earnest money deposits specifically.

That same law lets the money go somewhere else if everyone with an interest in it agrees in writing. That is how earnest money often ends up with an escrow company instead of a brokerage. Your purchase agreement and escrow instructions will say exactly where yours goes.

A few other protections in Nevada law are worth knowing:

• No mixing. A broker may not commingle a client's money with their own (NRS 645.310).
• Deposited fast. Once an agreement is accepted, a broker who fails to deposit a check or cash received as earnest money before the end of the next banking day can be disciplined, unless the purchase agreement provides otherwise (NRS 645.630).
• No surprises about the form. If a broker accepts something other than cash as earnest money, the seller must be told before accepting the offer, and the receipt must show it (NRS 645.630).
• Records and audits. Brokers must keep records of every trust account deposit, balance the account at least monthly, and the Nevada Real Estate Division can inspect and audit those records (NRS 645.310).

What happens to earnest money at closing?

It gets credited to you. The CFPB's home loan toolkit explains that the cash you bring to closing includes your down payment and closing costs, minus any deposits and credits. On your Closing Disclosure, look for the line labeled "Deposit" in the section showing what has already been paid by you or on your behalf.

Before closing day, compare that line to your receipt. The number should match what you put down.

Do you get your earnest money back if the deal falls through?

It depends on why the deal ended and what your contract says. There's no one-size-fits-all answer, but there is a pattern.

You are in a much stronger position when you cancel for a reason your contract allows, inside the time it allows. You are in a weaker position when you simply change your mind after your contract deadlines have passed.

Contingencies are the reasons your contract allows. VA's Buyer's Guide mentions an appraised value contingency and a satisfactory home inspection contingency as ones to consider. Your agent can tell you which are typical in your market and how the deadlines work.

How does the VA escape clause protect your earnest money?

This is one of the best protections VA buyers have. VA's Buyer's Guide says every sales contract for a VA-guaranteed loan must contain the VA escape clause. It says you will not lose your earnest money, or be required to buy, if the purchase price is higher than the value VA's appraisal sets for the home.

You still get to choose. The same clause gives you the option to go ahead with the purchase anyway. VA's guide lists a few paths when the appraisal comes in low: ask for a reconsideration of value, renegotiate the price with the seller, or bring cash to cover the difference.

The escape clause covers the appraisal. It does not cover every reason a buyer might want out. That is why the other contingencies in your contract still matter.

Common earnest money mistakes

• Treating it like a fee. It is your money, held for you, and it counts toward your purchase at closing.
• Missing a contract deadline. Your inspection and other contingency periods have end dates. Put every one on your calendar the day your offer is accepted.
• Paying the seller directly. In Nevada, a broker deposits it into a trust account or it goes where the written agreement says, usually escrow. Do not hand it to the seller.
• Trusting new wiring instructions in an email. The CFPB warns that scammers target homebuyers days before closing. Before you wire any money, call the escrow or title company at a number you already know is real, not one from the email.
• Not keeping the receipt. Keep your receipt and check it against the "Deposit" line on your Closing Disclosure.

More on buying in Nevada

• What are the steps to buying a house in Nevada?
• VA loan appraisal requirements
• What does a VA loan cost at closing in Las Vegas?

Sources

• Nevada Revised Statutes Chapter 645 (NRS 645.310 trust accounts and deposits, NRS 645.630 grounds for discipline), Nevada Legislature
• U.S. Department of Veterans Affairs, VA Home Loan Buyer's Guide (earnest money deposit, VA escape clause, contingencies, negotiable items)
• Consumer Financial Protection Bureau, Your Home Loan Toolkit (cash to close and the Deposit line on the Closing Disclosure)
• Consumer Financial Protection Bureau, Beware of mortgage closing scams (page last modified June 16, 2026)

Frequently asked questions

What is earnest money?

Earnest money is a cash deposit you make when your offer is accepted to show the seller you are serious. VA's Buyer's Guide describes it as a deposit used to hold a home you are bidding on.

Who holds earnest money in Nevada?

A real estate broker who receives it must deposit it in a trust account at a Nevada bank or credit union, unless everyone with an interest in the money agrees in writing to another arrangement, such as an escrow company. That rule is in NRS 645.310.

How fast does a Nevada broker have to deposit earnest money?

Once the agreement is accepted, a broker who fails to deposit earnest money before the end of the next banking day can be disciplined, unless the purchase agreement provides otherwise. That rule is in NRS 645.630.

Is earnest money required for a VA loan?

No. VA's Buyer's Guide lists the earnest money deposit as optional. A seller may still weigh it when comparing offers, so decide with your agent before you write the offer.

Do I lose my earnest money if the VA appraisal comes in low?

No. The VA escape clause, which must be in every VA sales contract, says you will not lose your earnest money if the price is higher than the value VA sets. You can still choose to go ahead with the purchase.

What happens to earnest money at closing?

It is credited toward your purchase. It shows on your Closing Disclosure as a Deposit and lowers the cash you need to bring to closing.

Writing an offer soon and not sure how much earnest money makes sense? Let's make this simple. Send me the home you are looking at, and I will walk you through your contract deadlines before you sign anything. You can find me at homesbyjrod.com.

The information in this article comes from Nevada Revised Statutes Chapter 645, VA's Home Loan Buyer's Guide, and CFPB materials, checked on October 27, 2026. Laws, contracts, and lender requirements can change, so confirm with your agent, escrow officer, and lender. This is general education, not legal or financial advice.