Earnest Money in Florida: What Agents Need to Know

Earnest Money in Florida

Earnest money in Florida typically runs 1-3% of the purchase price, held in escrow by the title company or listing broker, and governed by rules that differ meaningfully from other states. No option period. Strict escrow laws under Chapter 475. Inspection contingencies that determine whether the buyer’s deposit is refundable. If you’re an agent working Florida transactions — or coordinating them remotely like we do — the details matter.

We coordinate Florida closings regularly from our remote TC operation, and the earnest money questions come up on nearly every file. Florida’s contract structure, escrow regulations, and market-specific customs create a deposit landscape that’s distinct from states like Texas or the Carolinas. Here’s what we see in practice.

How Much Earnest Money Is Standard in Florida?

There’s no statutory minimum or maximum. The amount is negotiated between buyer and seller and written into the contract. But market norms exist, and they vary by region more than most agents expect.

Typical ranges across Florida:

• 1-2% of purchase price — standard in most mid-market areas (Orlando, Tampa, Jacksonville)
• 2-3% — common in competitive areas or when sellers want stronger offers
• $10,000-$50,000+ — South Florida luxury markets (Miami, Fort Lauderdale, Palm Beach) regularly see flat amounts in this range, especially on properties above $500K
• $1,000-$5,000 flat — sometimes seen on lower-priced properties or in less competitive markets

On a $400,000 home in the Tampa market, we typically see $4,000-$8,000. On a $1.2M condo in Miami Beach, $25,000-$50,000 isn’t unusual. The amount signals the buyer’s seriousness — and in competitive situations, a larger deposit can make the difference between an accepted offer and a rejection.

Florida Contracts: FAR/BAR and FR/BAR AS IS

Florida agents primarily use two residential contract forms, and both handle earnest money slightly differently in practice.

FAR/BAR Residential Contract (Florida Realtors/Florida Bar Contract) — the standard form for most residential transactions. It includes detailed provisions for earnest money deposits, inspection periods, and default remedies.

FR/BAR AS IS Residential Contract for Sale and Purchase — used when the property is sold in its current condition. The inspection period in an As-Is contract gives the buyer time to evaluate the property, but there’s no obligation on the seller to make repairs. This form is extremely common in Florida, particularly for investor purchases, estate sales, and older properties.

Both contracts specify:

• The earnest money amount
• Who holds the deposit (escrow agent)
• The deposit delivery deadline — commonly 3 days after the effective date for the initial deposit
• Whether an additional deposit is required (some contracts call for a second deposit after the inspection period)

That additional deposit clause catches agents off guard sometimes. We see contracts where the buyer owes an initial $5,000 within 3 days, then an additional $10,000 within 3 days after the inspection period ends. Missing either deadline is a breach.

Deposit Deadlines and Delivery

The contract specifies when earnest money must be delivered. In our experience, FR/BAR contracts require delivery within 3 days (calendar days) after the effective date. A deadline that falls on a weekend or national holiday rolls to the next business day. But “delivery” means the funds reach the escrow agent — not that the buyer initiated a wire or wrote a check.

What we track as TCs:

1. Earnest money delivery deadline — first thing we enter on every Florida file
2. Confirmation of receipt from the escrow agent or title company
3. Additional deposit deadlines (if the contract includes a second deposit)
4. Whether the deposit amount on the escrow receipt matches the contract

A mismatch between the contract amount and the actual deposit is more common than you’d think. The contract says $5,000, the buyer sends $4,500. That discrepancy can create problems at closing or give the other side leverage if the deal goes sideways.

Florida’s Inspection Period vs. Texas’s Option Period

If you’ve worked in Texas, you know the option period — a set number of days where the buyer can cancel for any reason after paying a non-refundable option fee. Florida doesn’t have that structure.

Florida uses inspection contingencies instead. The buyer has a specified number of days (written into the contract — commonly 10-15 days) to conduct inspections and decide whether to move forward.

Key differences:

Under the AS IS contract, the buyer can cancel in its sole discretion during the Inspection Period and get the deposit back. After that window closes, the buyer’s leverage evaporates. They’re bound by the contract terms, and the earnest money is at stake if they default.

Who Holds the Escrow — and Why It Matters in Florida

Florida law is specific about escrow handling. Under Chapter 475 of the Florida Statutes, real estate brokers who hold escrow funds face strict requirements:

• Funds must be deposited into the escrow account by the end of the third business day following receipt
• Escrow accounts must be maintained at a Florida banking institution
• Brokers must provide written notification to the Florida Real Estate Commission (FREC) of any escrow disputes within 15 business days
• Brokers must institute one of several procedures to resolve the dispute — including mediation, arbitration, interpleader, or an escrow disbursement order from FREC

Common escrow holders in Florida:

• Title company — most common. The title company deposits funds in their escrow account and handles disbursement at closing or upon contract termination.
• Listing broker’s escrow account — still used, particularly in some traditional brokerages. The broker is personally responsible for compliance with Chapter 475.

When a deal falls through and both parties claim the deposit, the escrow holder is stuck in the middle. In Florida, the broker or title company can file an interpleader action — essentially asking the court to decide who gets the money. The escrow agent deposits the funds with the court and steps aside.

This is different from some states where the escrow holder simply waits for mutual release instructions indefinitely. Florida’s framework pushes toward resolution, but the process can still take months if it goes to court.

Condo Transactions: The Condo Rescission Wrinkle

Florida condo transactions add a layer that catches out-of-state agents off guard. Under Florida Statute 718.503, a buyer purchasing a resale condo can cancel the contract and receive a full refund of their deposit within 7 days (excluding Saturdays, Sundays and legal holidays) after the later of signing the contract and receiving the required association documents — unless the buyer received the documents 7 or more days before signing. Buyers purchasing from a developer get 15 days.

This is a statutory right — it can’t be waived, and it exists regardless of what the contract says about inspection periods. Even if the inspection period has expired, the buyer may still cancel under this condo-doc review window if the rescission period hasn’t run.

What this means in practice:

• The rescission clock starts at the later of signing and receiving the condo documents — if the documents arrive after the contract is executed, the clock waits for them
• If the seller delays delivering condo docs, the buyer’s cancellation window extends
• The buyer doesn’t need a reason to cancel during this period
• This applies to condos specifically — not townhomes, single-family homes, or other property types (though co-ops have their own rules)

We track the condo document delivery date separately from the inspection period on every Florida condo file. They’re two independent deadlines that both affect whether the buyer can get their earnest money back.

What Happens to Earnest Money at Closing in Florida?

Same as most states — the earnest money is credited to the buyer at closing. It shows up as a line item on the closing disclosure, reducing the amount the buyer needs to bring to the closing table.

Example on a Florida transaction:

• Purchase price: $425,000
• Down payment (10%): $42,500
• Earnest money deposited: $8,500
• Closing costs (buyer’s share): $12,000
• Cash due at closing: $42,500 + $12,000 - $8,500 = $46,000

The earnest money doesn’t disappear — it’s applied toward the buyer’s costs.

One thing we do on every Florida file: confirm the escrow agent received each deposit, and make sure title has any signed amendment that changes the amount. Agents review the closing numbers with their clients; we don’t review the closing disclosure.

What Our TC Team Tracks on Florida Files

When we receive a Florida contract-to-close file, here’s what we track related to earnest money:

• Deposit amount matches the contract terms
• Delivery deadline — flagged immediately if tight
• Receipt confirmation from the escrow agent
• Additional deposit requirements — second deposit amount and deadline, if applicable
• Inspection period expiration — the date after which the buyer’s deposit becomes at-risk
• Condo document delivery date — for condo transactions, tracked independently
• Amendments to title — any signed change to the deposit amount is in the escrow agent’s and title’s hands

Missing a single deadline on any of these items can jeopardize the transaction. That’s the kind of detail work that gets lost when agents are managing 15 active deals and fielding showing requests. It’s exactly what we handle.

If you’re working Florida transactions and want your contract-to-close process managed by a team that knows the Florida-specific deadlines, we’d like to talk.

Want a TC to track these deadlines for you? See how hiring a transaction coordinator works and what it costs per file.

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