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, including the requirement to notify the FREC within the deadline set by the rule. 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.

Contract contingencies establish precise windows for earnest money protection. In standard Florida real estate contracts, including the FAR/BAR AS IS Residential Contract, a buyer maintains the right to cancel and receive a full return of their earnest money deposit when acting strictly within contractual contingency periods:

• Inspection Period (Section 12): Under the AS IS contract, the buyer has the right to conduct inspections and terminate the contract in their sole discretion by delivering written notice to the seller before the inspection period expires (typically 15 days, or as negotiated). Timely written notice entitles the buyer to a full refund of all earnest money deposits.
• Financing Contingency (Section 8): If the contract is contingent on financing, the buyer must make diligent loan application and notify the seller in writing prior to the end of the loan approval period if unable to obtain loan approval. Timely written termination under the financing terms protects the earnest money from forfeiture.
• Condominium / HOA Document Review: Under Florida Statutes § 718.503 (condominiums) and § 720.401 (homeowners associations), buyers hold statutory cancellation windows upon receipt of association governing documents and disclosures. Exercising statutory cancellation within the allowed window guarantees the full return of earnest money deposits.

Missing a contractual contingency deadline without delivering written notice can cause the buyer to forfeit the deposit if they subsequently fail to close.

Electronic earnest money transfers require strict verification protocols. Real estate wire fraud specifically targets buyers transmitting earnest money deposits and closing funds. Cybercriminals intercept email communications to substitute fraudulent wiring instructions.

To protect deposit funds against wire diversion:

• Direct Voice Verification: Never rely exclusively on email for wire instructions. Always call the escrow holder or title agency directly at an independently verified phone number—not the phone number printed on the emailed wiring PDF—to verify account details before initiating any wire transfer.
• No Last-Minute Wiring Changes: Legitimate Florida title companies and escrow agents rarely change wiring details during an active transaction. Treat any unexpected email requesting urgent transfer adjustments or alternate banking institutions as suspicious.
• Immediate Banking Confirmation: Immediately after initiating an earnest money wire transfer at the originating financial institution, request bank tracking numbers and confirm with the escrow officer that the incoming wire has posted successfully.

Deposit compliance protects contract standing. Review the governing FAR/BAR AS IS contract terms, then use the Florida contract release and cancellation guide to organize the signed contract, notices, and escrow records for qualified legal or closing review. Identify how closing selections determine who pays title insurance in Florida.