Earnest Money Deposits in Florida Real Estate
An earnest money deposit in Florida is a good-faith payment a buyer makes when signing a purchase contract to demonstrate serious intent to buy the property. The deposit is held in escrow until the transaction closes or terminates, at which point it is either credited toward the buyer's purchase price or returned based on the contract terms.
Florida Deposit Rules
Florida's earnest money rules are governed by the purchase contract and Chapter 475, Florida Statutes:
- Amount: There is no statutory minimum. Typical residential deposits are 1% to 3% of the purchase price.
- Deposit deadline: The FAR/BAR contract specifies when the deposit must be received (usually within 3 business days of the effective date).
- Escrow requirements: Brokers must deposit funds into a separate escrow account by the end of the third business day. Funds cannot be commingled with operating accounts.
- At closing: The deposit is credited toward the buyer's closing costs and purchase price.
When the Deposit Is Refunded
The buyer receives a full refund of the earnest money if they:
- Cancel during the inspection period
- Cannot obtain mortgage approval (financing contingency)
- The property appraises below the purchase price (appraisal contingency)
- The seller cannot deliver marketable title
When the Seller Keeps the Deposit
If the buyer cancels outside of a valid contingency period without a contractual right to do so, the seller may retain the deposit as liquidated damages under the FAR/BAR contract.
Related Terms
- Earnest Money — Overview of good-faith deposits in real estate
- Escrow Agreement — The agreement governing how the deposit is held
- Closing Costs — Fees and charges applied at closing
Barnes Walker Title Services
Barnes Walker Title holds earnest money deposits in trust escrow accounts for residential and commercial transactions throughout Southwest Florida. Submit a title inquiry for assistance.
Florida Law Reference
Fla. Stat. § 475.25
Florida law requires real estate brokers to maintain escrow accounts for deposits and establishes dispute resolution procedures when buyer and seller disagree over earnest money.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC