Earnest Money In Nevada: What Buyers Should Know

What happens to your money once a seller accepts your offer, and how do you keep it safe? If you are buying in Reno, earnest money is a small part of your purchase that carries big weight. You want to show you are serious without exposing more than you should. In this guide, you will learn how earnest money works in Nevada, what is typical in Washoe County, and the steps that protect your deposit at every stage. Let’s dive in.

Earnest money, explained

Earnest money is your good‑faith deposit. You deliver it after the seller accepts your offer to show you intend to close. If the sale completes, it is applied to your closing costs or down payment. If the sale cancels for a reason allowed by the contract, your deposit is typically returned.

In Nevada, the purchase agreement spells out the amount, who holds it, when you must deliver it, and what happens if either party fails to perform. This deposit can make your offer more competitive. It can also become a measure of damages to the seller if you default after your contingencies are removed.

Typical amounts in Reno

There is no single rule. In many Reno single‑family transactions, you will often see either a flat deposit or a percentage of the price. Common guidance includes:

• Flat deposits around $1,000 to $10,000 on many properties
• Percentage deposits around 1% to 3% of the purchase price

Your number should reflect current market conditions, your price point, and your financing. In a hot seller’s market, deposits trend higher. Luxury homes often see larger deposits. Cash buyers may offer bigger or faster deposits to signal strength, while loan‑contingent buyers may keep deposits modest until key milestones are met.

When you pay and who holds it

Your contract will set the deadline to deliver the deposit. In Washoe County, most agreements require you to deliver earnest money to the named escrow or title company within 1 to 3 business days after mutual acceptance. The escrow holder places funds in a trust account and keeps them there until closing or a valid termination per the contract.

If you are financing with a conventional, FHA, or VA loan, a 30 to 45 day escrow is common. Cash purchases can sometimes close in 7 to 14 days, depending on inspections, title work, and seller readiness. On closing day, after documents are signed and funded, the deed is recorded with the Washoe County Recorder, and your deposit is credited toward what you owe.

Contingencies that protect your deposit

Contingencies are safety valves written into your contract. If a stated condition is not met within the timeline, you can cancel and usually receive your earnest money back.

Inspection contingency

Purpose: to inspect the property and negotiate repairs or exit if you are not comfortable with the findings. In many Reno contracts, the inspection period is 5 to 10 business days after acceptance. If you cancel within that period per the contract terms, your deposit is generally refundable.

Financing contingency

Purpose: to protect you if your loan cannot be approved. Timelines often run about 21 to 30 days for a lender to issue approval. If you are denied and cancel in time under the contingency, you should be entitled to a refund.

Appraisal contingency

Purpose: to address a low appraisal. If the property appraises below the purchase price, you can often renegotiate or cancel under this contingency. It may have its own deadline or run with the loan contingency.

Title and HOA review

Purpose: to ensure clean title and acceptable association conditions. You will have a set period to review the preliminary title report and, if applicable, HOA documents and CC&Rs. If a title issue or HOA concern is not resolved and your contract allows, you can cancel and recover your deposit.

After you remove contingencies

Once you remove contingencies in writing, your deposit typically becomes non‑refundable if you fail to close. Be precise with dates and notices. If a dispute arises over who is entitled to the deposit, the escrow holder will usually keep funds in the trust account until the parties agree or follow the contract’s dispute steps.

How to protect your earnest money

Use these practical steps from offer to close:

• Verify the escrow holder. Confirm the full legal name and contact details of the title or escrow company listed in your contract.
• Get written confirmation. Ask for an emailed receipt showing the amount received, date, payer name, and escrow file number.
• Confirm wiring instructions by phone. Call the escrow company using a verified phone number you find independently. Never rely only on emailed wiring details.
• Choose secure payment methods. Use a cashier’s check or a direct wire to the escrow trust account. Do not send funds to an individual.
• Track deadlines. Calendar inspection, loan, appraisal, title, and HOA dates. Send notices and contingency removals in writing exactly as the contract requires.
• Clarify release conditions. Strong escrow instructions and mutual releases help prevent deposit disputes.
• Act fast if issues arise. If the seller claims your deposit, contact your agent and escrow officer quickly so the funds are held while the issue is resolved.

Offer strategies without overexposing your deposit

You can strengthen your offer while keeping your deposit protected:

• Shorten key contingency periods. For example, tighten your inspection window to make your offer efficient for the seller, while preserving your rights during that period.
• Lead with proof of funds or a strong pre‑approval. Ease seller concerns about financing and timelines.
• Consider a price strategy. A slight price improvement or an escalation clause may compete better than a larger deposit.
• Match deposit timing to milestones. Coordinate deposit delivery and contingency dates with your lender and inspector so you are not forced to remove protections too soon.
• Be cautious with non‑refundable terms. Some sellers request non‑refundable deposits after appraisal or loan approval. Understand the risk before you agree.

A simple Reno timeline example

Every contract is different, but here is a sample path to help you plan:

• Day 0: Offer accepted and escrow opened. Your contract lists the escrow holder and deadlines.
• Days 1–3: You deliver earnest money to escrow and receive a receipt.
• Days 1–10: You complete inspections and request repairs or cancel per your inspection contingency if needed.
• Days 1–21: Appraisal is ordered and completed. You evaluate the result under the appraisal contingency.
• Days 21–30: Your lender issues loan approval. If approval is not possible, you cancel under the financing contingency.
• Before closing: You remove remaining contingencies in writing when you are ready and confident.
• Closing day: Funds are in, documents are signed, and the deed is recorded with the county. Your deposit is credited to your closing funds.

Timelines are negotiable. Always follow the exact dates in your signed agreement.

Common pitfalls to avoid

• Delivering the deposit late or to the wrong place
• Removing contingencies before key answers arrive
• Ignoring HOA disclosures or title issues
• Skipping wire verification and falling for a phishing email
• Assuming a refund is automatic without following notice rules

Stay organized, ask questions, and respond to each deadline in writing. A clear plan keeps your deposit safe and your closing on track.

Ready to move forward?

If you want a confident path from offer to closing in Reno, you need a clear plan for earnest money, contingencies, and timing. With deep neighborhood expertise and a calm, step‑by‑step process, we guide you from first tour to recording day. For tailored advice on deposit strategy and timelines for your specific price point or community, connect with Sonja Leonard. We will map your offer, negotiate protections, and get you home with confidence.

FAQs

How much earnest money is typical in Reno?

• Many buyers put down $1,000 to $10,000 or about 1% to 3% of the price, adjusted for market conditions, property tier, and financing strength.

When do Nevada buyers get earnest money back?

• If you cancel within a valid contingency window, such as inspection, financing, title, or HOA review, your deposit is generally refundable per the contract.

Who holds the earnest money in Washoe County?

• A title or escrow company named in the purchase agreement holds your deposit in a trust account until closing or a valid termination.

What happens to the deposit if a seller defaults?

• If a seller breaches and refuses to close, you may be entitled to the return of your earnest money and other remedies as outlined in the contract.

How soon must buyers deposit after offer acceptance?

• Most contracts require delivery within 1 to 3 business days after mutual acceptance, so plan your payment method and timing in advance.

How can buyers avoid real‑estate wire fraud in Reno?

• Always verify wiring instructions by calling the escrow company at a confirmed phone number and never rely solely on emailed instructions.