Earnest Money Deposit in Florida: How Much, When It's Due, and When You Get It Back
Plain-language guide to earnest money deposits in Florida from Griff — how much sellers expect, the 3-day deposit rule, the inspection-period refund window, and exactly when you lose it.
Earnest Money in Florida — The Short Answer
An earnest money deposit (EMD) in Florida is a good-faith payment from buyer to seller — typically 1% to 3% of the purchase price — wired into a title company or broker escrow account within three business days of contract acceptance. The deposit is fully refundable during the inspection period (15 days by default on the FAR/BAR contract). After that window closes, the buyer can lose the deposit if they back out for any reason not covered by a remaining contingency.
That's the rule in plain English. The rest of this post walks through what those numbers actually look like in Broward and Palm Beach, the deadlines that catch first-time buyers off guard, when sellers can keep your money, and what to do if a deposit gets stuck. I'm Griff, and Beth and I have walked clients through hundreds of these in 22 years across South Florida — including the ugly ones where deposits got disputed.
How Much Earnest Money Is Standard in Florida?
Florida doesn't have a legally required earnest money amount. The number is whatever the buyer and seller agree to in the contract. In practice, here's what's typical in South Florida right now:
| Purchase Price | Typical EMD | Notes |
|---|---|---|
| Under $400,000 | $5,000 - $10,000 | Often a flat dollar amount rather than a percentage. |
| $400,000 - $800,000 | 1% - 2% of purchase price | $5,000 to $15,000 range covers most Broward and Palm Beach transactions. |
| $800,000 - $2M | 2% - 3% | Sellers in this range expect a more meaningful commitment. |
| Above $2M | 3% - 5%, sometimes more | Often staged: smaller initial deposit, larger second deposit after inspection. |
| New construction | 10% - 20% | Builders set their own terms — much higher than resale and often non-refundable after a short window. |
In a competitive multiple-offer situation, buyers sometimes raise the EMD to signal seriousness — a $25,000 deposit on a $700,000 home reads as a more committed offer than a $7,000 deposit. The downside is that money is locked up and at risk if anything goes sideways.
When Is the Deposit Due in Florida?
Under the standard FAR/BAR (Florida Realtors / Florida Bar) contract, the earnest money deposit is due within three business days after the effective date of the contract — the date both parties have signed and notice of acceptance has been delivered. "Business days" in this context means weekdays, excluding state and federal holidays, and the count starts the day after the effective date.
Here's how that plays out in practice:
- Contract signed Monday afternoon → deposit due by end of business Thursday.
- Contract signed Friday → deposit due by end of business Wednesday (Saturday and Sunday don't count).
- Contract signed the day before a holiday → that holiday is skipped in the count.
The deposit goes by wire transfer to the title company or the listing broker's escrow account, whichever the contract designates. Personal checks are technically allowed but most title companies will not start the clock on escrow until they have cleared funds. Miss the three-day deadline and the seller has the right to terminate the contract. In a hot market, that's exactly what some sellers will do — they'll cancel and move to a backup offer.
Where Does the Earnest Money Actually Sit?
Florida law (Chapter 475 of the Florida Statutes) is strict about where escrow funds can be held. The deposit goes into one of three places, and the contract specifies which:
- The title company's escrow account — most common. The title company chosen by the buyer (or the seller, depending on negotiation) holds the funds in a non-interest-bearing trust account until closing or contract termination.
- The listing broker's escrow account — the brokerage representing the seller holds the deposit. Broker escrow accounts are heavily regulated and audited by the Florida Real Estate Commission (FREC).
- An attorney's trust account — less common in residential, more typical in larger commercial transactions.
The funds are not the seller's money during the contract period. They're held in trust and can only be released according to the contract terms or by mutual written instruction from both parties.
Is Earnest Money Refundable in Florida?
Yes — but only during specific contingency periods. After those periods expire, the deposit is at risk. Here's the timeline:
Refundable: During the inspection period
The standard FAR/BAR contract gives the buyer 15 days from the effective date to inspect the property. During this window, the buyer can cancel the contract for any reason and get the full deposit back. This is the most common reason deposits are refunded — buyer finds something they don't like (or simply changes their mind) and walks away inside the window.
Refundable: If a financing contingency is invoked
If the buyer is using financing and the contract includes a financing contingency, the deposit is refundable if the buyer cannot secure loan approval by the deadline specified in the contract (typically 30 days). The lender denial letter is the documentation.
Refundable: If the appraisal comes in low
If the contract includes an appraisal contingency and the appraisal comes in below the purchase price, the buyer can either renegotiate or cancel and get the deposit back. Many cash offers waive this contingency to stand out — that's a calculated risk.
Refundable: If the seller breaches
If the seller fails to deliver clear title, refuses to make agreed-upon repairs, or otherwise breaches the contract, the buyer is entitled to a full refund.
NOT refundable: After contingencies expire
Once the inspection period closes and any financing/appraisal contingencies have been satisfied or waived, the deposit becomes liquidated damages. If the buyer walks away at this point for any reason not protected by contract, the seller is generally entitled to keep it.
What Happens to the Earnest Money at Closing?
The earnest money doesn't disappear at closing — it gets credited to the buyer on the Closing Disclosure. Here's how it actually moves:
- Your "cash to close" (the wire you send to the title company on closing day) is the down payment plus closing costs minus the earnest money already in escrow.
- So if your down payment is $40,000, closing costs are $8,000, and you put down $10,000 EMD, you wire $38,000 on closing day. The $10,000 EMD is already there.
- You'll see the deposit listed on the Closing Disclosure as a credit — usually under "Adjustments and Other Credits" or a similarly named line.
If you want to walk through how the closing process and timeline actually work in Florida, our guide to close of escrow in Florida covers the whole 30-to-45-day arc from accepted offer to keys in hand.
When Can the Seller Keep Your Earnest Money?
The seller can claim the deposit when the buyer breaches the contract. The most common scenarios in Florida:
- Buyer walks away after the inspection period closes for a reason not covered by a remaining contingency — change of mind, found a different house, got cold feet.
- Buyer fails to perform a contractual obligation — doesn't deliver the additional deposit by the deadline, doesn't apply for financing in good faith, doesn't show up to closing.
- Buyer waives a contingency and then tries to use it as an exit ramp — for example, waiving the financing contingency and then trying to back out because the loan didn't go through.
Even when the seller is clearly entitled to the deposit, they can't just take it. The escrow holder (title company or broker) needs written authorization from both parties or a court order before releasing funds. If the buyer refuses to sign a release, the deposit can sit in escrow for months while the parties dispute.
What If the Deposit Gets Stuck in Escrow?
Disputed deposits are the ugly part of this process. Florida has two specific procedures for handling them:
- Mediation through Florida Realtors. If both parties are working with REALTORS, the contract typically requires mediation before any litigation. Often resolves in 30-60 days.
- FREC Escrow Disbursement Order (EDO). If a Florida real estate broker is holding the funds and the parties can't agree, the broker must file with FREC for an EDO within 15 business days of receiving conflicting demands. FREC reviews the contract and issues a binding order on who gets the money. This process typically takes 60-120 days.
The realistic timeline on a disputed deposit is two to four months. The dollar amount usually isn't worth a lawsuit, so most disputes settle through mediation with both sides taking a partial cut.
Florida-Specific Rules to Know
The 3-day deposit rule
As covered above — earnest money is due within three business days of the effective date under FAR/BAR. If the contract specifies a different deadline, that wins. Always check the contract.
The 15-day inspection period
The default FAR/BAR inspection period is 15 calendar days (not business days). Weekends count. Holidays count. The clock starts the day after the effective date. If the 15th day falls on a weekend or holiday, the deadline rolls forward to the next business day.
"As-Is" vs. "Standard" contracts
Florida has two main FAR/BAR forms — the AS-IS contract and the standard (repair-limit) contract. With the AS-IS contract, the buyer has the unilateral right to cancel during the inspection period and get a full refund. With the standard contract, the seller has a right-to-repair window, and the cancellation rules are tighter. Most South Florida resales use the AS-IS form.
Second deposits
Many higher-end Florida contracts call for a second deposit due after the inspection period (often 5-10% of purchase price). This second deposit is generally non-refundable except for seller default — so think carefully before sending it.
Frequently Asked Questions
Is earnest money refundable in Florida?
Yes, during the inspection period (typically 15 days from contract acceptance) and during any active financing or appraisal contingency. After those windows close, the deposit is at risk and can be claimed by the seller if the buyer breaches the contract.
How much earnest money is required in Florida?
Florida law doesn't set a required amount. In South Florida, 1% to 3% of the purchase price is typical for resales — usually $5,000 to $15,000 in the most common price ranges. New construction often requires 10% to 20%.
When is earnest money due in Florida?
Within three business days of the effective date of the contract, under the standard FAR/BAR purchase agreement. Business days exclude weekends and state and federal holidays.
Can the seller keep my earnest money if I back out?
Only if you're outside the inspection period and the cancellation isn't covered by a remaining contingency (financing, appraisal, title, seller default). Inside the inspection period, you can cancel for any reason and get the deposit back.
Does the inspection period include weekends in Florida?
Yes. The default 15-day inspection period under FAR/BAR is calendar days, not business days. Weekends and holidays count. If the 15th day lands on a weekend or holiday, the deadline rolls to the next business day.
What if the seller refuses to release the earnest money?
If the deposit is held by a Florida real estate broker, the broker must request an Escrow Disbursement Order (EDO) from FREC within 15 business days of receiving conflicting demands. If held by a title company, the parties typically go to mediation, then potentially to court. Disputed deposits often take two to four months to resolve.
What happens to earnest money at closing in Florida?
It's credited to the buyer on the Closing Disclosure and applied toward the down payment and closing costs. You don't get it back as a separate payment — you simply send a smaller wire on closing day because the earnest money is already in escrow.
Is earnest money required to make an offer in Florida?
Not technically — you can submit a contract with $0 earnest money. In practice, sellers expect a meaningful deposit as a sign of good faith, and listing agents usually advise sellers to reject offers without one.
The Bottom Line
Earnest money in Florida is straightforward when you understand the deadlines: three business days to fund the deposit, fifteen days to inspect and cancel risk-free. Miss either deadline and the deal can collapse or the deposit can become contested.
If you want to understand what happens after the inspection period closes — the loan processing, the title work, and the actual mechanics of getting to the closing table — read our companion guide on close of escrow in Florida. If you're already under contract and something feels off about your deposit, reach out to Beth or me. Twenty-two years in South Florida means we've seen most of the ways these can go sideways — and how to keep them on the rails.