What are Florida earnest money escrow rules and timelines?

Florida holds brokers to a short, fixed timetable for escrow funds. The deposit deadline is set by Florida Real Estate Commission rule under Chapter 475, Florida Statutes and Fla. Stat. § 475.25(1)(d), all earnest money deposits received by a real estate licensee must be placed into a bank, title company, or trust institution in Florida.

The rule establishes a two-tiered statutory timetable:

• Sales Associate Timetable: A sales associate or broker associate who receives earnest money must deliver the funds to their broker no later than the end of the next business day following receipt.
• Broker Deposit Timetable: The supervising broker must deposit the funds into a designated trust or escrow account no later than the end of the third business day following receipt by the broker or licensee.

Saturdays, Sundays, and legal holidays do not count as business days when calculating this 3-day broker deposit window.

South Florida transactions frequently designate a title company or attorney as escrow agent. When earnest money is held by an independent Title Company or Closing Attorney rather than a broker, Section 2(a) and Standard S of the FR/BAR contract govern deposit verification.

Under Section 2(a), if the deposit is delivered to a title company or attorney, the buyer's broker must make written request to the escrow agent for written verification of receipt of the deposit within 10 business days of the deposit due date. Within 10 business days of receiving the verification, the buyer's broker must provide a copy to the seller's broker (or to the seller directly if unrepresented).

When buyer and seller make conflicting demands, statutory settlement procedures apply. If a broker holding escrow funds receives conflicting demands or has a good faith doubt as to who is entitled to the funds, Fla. Stat. § 475.25(1)(d)1 and F.A.C. Rule 61J2-10.032(1) require the broker to notify the Florida Real Estate Commission in writing, and then to begin one of the settlement procedures the rule allows. Both steps carry deadlines counted in business days - read the current rule for the exact counts rather than relying on a number quoted anywhere else, including here.

The broker must then institute one of four statutory dispute settlement procedures, within the deadline the rule sets:

1. Escrow Disbursement Order (EDO): Requesting a formal determination and order from the Florida Real Estate Commission;
2. Mediation: Submitting the dispute to mediation with the written consent of all parties;
3. Arbitration: Submitting the dispute to binding arbitration upon written agreement of all parties;
4. Interpleader Lawsuit: Filing an interpleader action in Florida circuit court to surrender the disputed funds to the court registry.

Note: If earnest money is held by an independent Title Company or Closing Attorney Escrow Agent, FREC rules do not govern the dispute; resolution is determined by contractual terms and Florida civil court interpleader proceedings.

Deposit compliance protects contract standing. Review the governing FAR/BAR AS IS contract terms, examine the written steps for releasing earnest money deposits, and identify how closing selections determine who pays title insurance in Florida.