Florida Buyer's Guide · Step 3 of 7
Escrow & Earnest Money
Your deposit shows the seller you're serious. Here's when it's due, who holds it, and when it comes back to you.
Under the AS IS contract, the initial deposit is due within 3 days after the Effective Date unless it goes in with the offer or the contract says otherwise. At closing, your deposit is credited toward your purchase price.
When it's due
- Initial deposit: with the offer, or within a set number of days after the Effective Date. The default is 3 days.
- Additional deposit (optional): the default is 10 days after the Effective Date.
- The amounts and timing are negotiable.
Who holds it
The escrow agent is named in Paragraph 2 of the contract. It's usually a title company or a real estate attorney, and sometimes a brokerage escrow account. Florida has strict rules for escrow deposits. For example, a brokerage has to deposit escrow funds by the end of the third business day after receiving them.
When you get it back
- You cancel during the inspection period: your deposit is returned.
- You cancel under the loan contingency, in time and as the contract allows: your deposit is returned. See Loan Contingency.
- The seller defaults: your deposit is returned.
- You default, for example by missing a deadline or walking away without a right to cancel: the seller may keep the deposit.
Protect yourself from wire fraud
- Before you send any money, call the title company at a phone number you found yourself. Don't use a number from an email.
- Treat any change to wiring instructions as a red flag, especially a last-minute change.
- If something feels off, stop and call me and the title company right away.
Common Questions
How much earnest money should I put down?
It's negotiable. We'll talk about an amount that makes your offer strong for that house and market.
Is my deposit applied to closing?
Yes. It's credited toward your purchase price at closing.
This guide is general information about the Florida Realtors/Florida Bar AS IS Residential Contract for Sale and Purchase (ASIS-7x) and the Florida Realtors buyer brokerage forms. It is not legal advice. Day counts shown are the form's defaults and apply only when the blank is left empty; your contract controls. For legal questions, consult a Florida real estate attorney.