Earnest Money Deposits in Florida Real Estate Explained (2026)

Last updated: July 2026

An earnest money deposit in Florida is the good-faith money a buyer puts up when a purchase contract is signed, held by a neutral third party until closing. It signals that the buyer is serious and gives the seller something at stake if the buyer walks away without a contractual reason. At closing the deposit is credited toward the purchase price or closing costs. If the contract is terminated for a permissible reason, it is returned to the buyer [4].

Under the standard Florida Realtors/Florida Bar (FR/BAR) "AS IS" Residential Contract, the earnest money deposit (also called the escrow deposit or binder deposit) is delivered to a named escrow agent, not to the seller. The amount is negotiable. There is no statutory minimum, and in practice deposits are set as a percentage of the purchase price, with higher-priced and more competitive deals often carrying larger deposits. In Miami, buyers and sellers should read the deposit less as a fee and more as a risk position: it is the capital you are underwriting against the contingencies that protect it.

Below is a plain walkthrough of amounts, custody, deadlines, refundability, and dispute resolution. This is general information, not legal advice.

What earnest money is and the role it plays

Earnest money is a deposit a buyer pays to show good faith on a signed agreement to buy a home, held by a seller or a third party such as a title company or broker [4]. It is not a fee paid to the seller and it is not the down payment, though it is typically applied toward the down payment or closing costs when the deal closes.

Functionally, the deposit does two things. It compensates the seller for taking the home off the market if the buyer defaults, and it gives the buyer leverage to negotiate a credible offer. A larger deposit reads as a stronger buyer. The trade-off is that a larger deposit is more capital exposed if you breach the contract, so the deposit size should be matched to how confident you are in your financing and timeline.

How much earnest money is typical, and it is negotiable

The amount is a term of the deal, not a rule. Florida law does not fix a percentage. Deposits commonly run a modest single-digit percentage of the purchase price, and in stronger-demand price points sellers may ask for more. The figure you agree to should reflect the local market, the competitiveness of the offer, and your own tolerance for risk.

On many Miami transactions the deposit is structured in two parts: a smaller initial deposit at contract signing and a larger additional deposit that becomes due at a later milestone, often after the inspection period ends. Splitting the deposit lets a buyer keep less capital at risk during due diligence and then commit more once the property has cleared inspection. If you plan to structure it this way, both deadlines and both amounts have to be written into the contract.

Who holds the deposit and the broker's escrow duties

The deposit is held by an escrow agent, which under the FR/BAR contract can be a title company, a closing attorney, or a real estate broker. Whoever holds it is a fiduciary of the funds, not a party who can spend them.

When a Florida broker holds escrow, state rules are strict about timing and safekeeping. A sales associate who receives a deposit must turn it over to the broker by the end of the next business day, and the broker must place the funds into an insured escrow account promptly, defined as no later than the end of the third business day following receipt [3]. The funds sit in that account, separate from operating money, until the deal closes or the parties agree in writing on how to release them. If a title company or attorney holds escrow instead, the contract must state that agent's name, address, and phone number.

For buyers, the practical point is verification. Confirm where your deposit is going, get the escrow agent's details in writing, and keep proof that the funds were received on time.

How the FR/BAR contract handles initial and additional deposits

The FR/BAR "AS IS" contract has a specific paragraph for the deposit. It states a number of days for the initial deposit to be delivered to the escrow agent, and if that blank is left empty, the default is delivery within 3 days after the effective date [5]. Delivery means the funds actually reach the escrow agent, not that a check was mailed or a wire was started.

The additional deposit, when the parties use one, has its own separate deadline written into the same paragraph. Missing either deadline can be treated as a buyer default, which is exactly the scenario where a deposit is put at risk. Because the timeline runs from the effective date, both sides should confirm the effective date in writing at the start, since every downstream deadline, including inspection and financing, keys off it.

Two operational habits protect buyers here: calendar the deposit deadlines the day the contract is signed, and send funds early enough that they clear by the deadline, not on it.

When the deposit is refundable versus at risk

The deposit is protected by the contingencies you negotiate. Under the FR/BAR "AS IS" contract, the main paths to a refund are:

Inspection and due-diligence period

The "AS IS" contract gives the buyer a defined inspection period to investigate the property and, at the buyer's sole discretion, cancel and receive the deposit back. This is the widest exit. Cancel in writing before the period expires and the deposit is generally refundable. Let it lapse and that protection is gone.

Financing contingency

If the contract is written with a financing contingency and the buyer pursues the loan in good faith but cannot obtain approval within the stated period, the deposit is typically refundable. A cash offer or a waived financing contingency removes this protection, which is one reason waiving it strengthens an offer but raises the buyer's risk.

Appraisal

When financing is involved and the appraisal comes in low, the outcome depends on how the contract and the financing terms are written. An appraisal shortfall can give the buyer a path to renegotiate or, in some structures, to recover the deposit. This is worth confirming line by line before signing.

Default

The deposit is at risk when the buyer breaches the contract without a contractual basis, for example missing a deposit deadline, failing to close, or canceling after the contingency windows have closed. In a buyer default, the FR/BAR contract generally allows the seller to retain the deposit as liquidated damages. That is the core reason to size the deposit deliberately and to track every deadline.

How escrow disbursement disputes are resolved in Florida

When a deal falls apart and both sides claim the deposit, the escrow agent cannot simply pick a winner. If the escrow holder is a Florida broker and there are conflicting demands or a good-faith doubt about who is entitled to the funds, the broker must give the Florida Real Estate Commission (FREC) written notice within 15 business days, and must then institute one of the statutory settlement procedures within 30 business days after the last demand [2].

Florida Statute 475.25(1)(d)1 gives the broker four options: request that the Commission issue an escrow disbursement order determining who is entitled to the funds, with the consent of all parties submit the matter to arbitration, seek adjudication by a court through interpleader or otherwise, or with the written consent of all parties submit the matter to mediation [1]. If the parties choose mediation and it is not successfully completed within 90 days following the last demand, the broker must promptly move to one of the other procedures [1].

Two limits matter in Miami's price points. An escrow disbursement order is a FREC remedy, but FREC will not issue one when the disputed amount exceeds $50,000 [3]. Above that threshold, the practical route is interpleader, where the escrow agent deposits the funds with the court and asks a judge to decide, then steps aside. The takeaway for both buyers and sellers: escrow disputes are procedural and can take time, so the cleaner move is to define refund conditions precisely in the contract and to document every cancellation in writing.

If you want to walk through how the deposit, contingencies, and deadlines apply to a specific Miami purchase, start with a buyer consultation, review common questions on the FAQ page, or see how these terms play out in a market like Brickell.

Frequently asked questions

How much earnest money do I need in Florida?

There is no legal minimum. The amount is negotiated and commonly set as a percentage of the purchase price, with stronger-demand deals often carrying larger deposits. Size it to how confident you are in your financing and closing timeline, since the deposit is the capital most exposed if you default.

Who holds my earnest money deposit?

A neutral escrow agent named in the contract, which can be a title company, a closing attorney, or a real estate broker [4]. When a Florida broker holds it, the funds must be placed in an insured escrow account no later than the end of the third business day after receipt [3].

When is the deposit due under the FR/BAR contract?

The contract states a number of days for the initial deposit to reach the escrow agent. If that blank is left empty, the default is delivery within 3 days after the effective date [5]. Any additional deposit has its own separate deadline written into the contract.

Can I get my earnest money back?

Yes, when you cancel within a protection the contract gives you, most commonly the inspection or due-diligence period, a financing contingency, or in some structures an appraisal shortfall. The deposit is generally at risk only when the buyer defaults without a contractual basis.

What happens if the buyer and seller both claim the deposit?

The escrow agent cannot release it unilaterally. A broker holding the funds must notify FREC within 15 business days and start a settlement procedure within 30 business days [2]. Options include a FREC escrow disbursement order, arbitration, mediation, or court interpleader, though FREC will not issue a disbursement order for amounts over $50,000 [3].

Gabriel

Sources

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Gabriel A. Moyers, PA. eXp Realty. Florida License #3407280. Equal Housing Opportunity. This article is general information as of July 2026 and is not legal, tax, or financial advice. Verify current figures against authoritative sources before acting.