What Can a Seller Do When a Buyer Backs Out in Nevada?

First question: did the buyer actually default?

Many 'buyer backed out' situations are lawful cancellations. Check whether the buyer cancelled within the due-diligence, financing, or appraisal window and gave written notice as required. If so, the buyer gets the deposit back. A default happens when the buyer cancels after contingencies expire or fails to close on time.

Liquidated damages: keeping the deposit

Nevada courts generally enforce liquidated damages clauses when actual damages were hard to predict at signing and the amount is a reasonable estimate, not a penalty. Earnest money in the typical 1% to 3% range usually qualifies. If the contract makes the deposit the exclusive remedy, the seller keeps it and cannot sue for more.

Actual damages when the contract allows

A seller who can pursue actual damages may recover:

• The drop in price if the property resells for less
• Mortgage interest, taxes, insurance, and HOA dues during the delay
• Costs of relisting and remarketing
• Minus the deposit, which is credited against damages

The seller's duty to mitigate

A seller seeking damages must make reasonable efforts to resell. Leaving the home off the market or refusing reasonable offers can reduce recovery. Relist promptly and document the marketing.

Steps for a seller after a buyer walks

Practical sequence:

• Confirm in writing that contingency deadlines had passed
• Send a notice of default and demand to close if the contract requires it
• Instruct escrow to release the earnest money to you
• If the buyer refuses to sign a release, use mediation, then court or interpleader
• Relist the property to mitigate