Good Faith Deposits in Florida Escrow
A good faith deposit (earnest money) demonstrates the buyer's serious intent to purchase. Held in escrow until closing, the deposit is credited toward the purchase price or forfeited per contract terms if the buyer defaults.
Typical Amounts
- Residential: 1-3% of purchase price
- Commercial: 5-10% of purchase price
- Amount is negotiable between the parties
Florida Escrow Rules (Chapter 475)
- Deposit within 3 business days (cash) or 10 days (check)
- Separate escrow account (no commingling)
- Accurate records required
- Disburse only per contract terms or court order
- Dispute: 30-day notice then interplead with court
Getting the Deposit Back
Recoverable if contingencies fail (inspection, financing, appraisal), seller breaches, or mutual cancellation. Not recoverable if buyer defaults or simply changes their mind.
Related Terms
- Escrow — Deposit held in escrow
- Contract — Purchase agreement terms
- Closing — Deposit credited at closing
Barnes Walker Title Services
Barnes Walker Title holds good faith deposits in secure escrow accounts for Florida real estate transactions. 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