Escrow Deposits in Florida: How Much and When It’s Due

You found the right home. Now you are wondering how much escrow money you need to put down in Florida, and exactly when it is due. You are not alone. First‑time buyers in Davie and across Broward often have questions about deposit amounts, delivery deadlines, and what happens if a deal falls through. In this guide, you will learn typical local ranges, timing, refund and forfeiture rules, and a simple checklist so you can move forward with confidence. Let’s dive in.

Escrow deposit basics in Florida

An escrow, or earnest money, deposit is your good‑faith payment that shows you are committed to buying the home. If the sale closes, the money is applied to your cash at closing, which can include the purchase price and closing costs.

In most Florida residential deals, a title or escrow company holds the funds. A closing attorney can also hold them, and in some cases a real estate brokerage will hold the deposit in its trust account. The purchase contract will name the escrow holder and state how and when you must deliver the funds.

When you deliver your deposit, ask for a written receipt. It should show the amount, who paid it, the date received, and the account where it is held. Escrow holders follow fiduciary and recordkeeping rules, and your specific contract controls how funds are handled and released.

How much is typical in Davie and Broward

Buyers size deposits in two main ways: as a fixed dollar amount or as a percentage of the purchase price.

• Fixed amounts are common for entry‑level and mid‑market homes, often $1,000 to $5,000 in Broward.
• Percentage‑based deposits often land around 1 percent of the price. In stronger or competitive situations, buyers may offer 2 to 3 percent or more.
• In pricier homes or multiple‑offer scenarios, deposits of $10,000 or higher are common.

What drives the amount you choose?

• Market conditions in your neighborhood. A stronger seller market often pushes deposits higher.
• Price point. The higher the price, the larger the deposit in dollars.
• Cash versus financing. Cash buyers sometimes increase deposits to strengthen their offers.
• Competition. If you are up against several offers, a larger deposit can signal commitment.
• Property type. Condos and certain resale situations may see different norms or timing for deposits.

Your goal is to balance a competitive offer with protection. You want to show confidence without risking more than you are comfortable with if contingencies expire and you cannot close.

When your deposit is due

Your contract sets the exact deadline. In practice, you will see a few common patterns in Broward:

• Deposit with the offer. Some buyers include funds when they submit an offer. This can strengthen the offer’s credibility.
• Deposit shortly after acceptance. Many contracts require delivery at the time of contracting or within a short window, often within 3 business days after both parties sign.
• Additional deposit later. Some deals call for a second installment. For example, a larger deposit might be due within 10 days after acceptance.

Read the executed contract carefully and calendar every deposit deadline. If you want to be treated as a strong, ready buyer, be prepared to wire or courier funds right away.

How to deliver your deposit safely

There are three common delivery methods:

• Wire transfer to the title company’s escrow account. This is fast and common for larger amounts. Always verify wiring instructions by phone using a trusted, publicly listed number for the title company.
• Cashier’s or certified check payable to the escrow agent or title company.
• Personal check. Some escrow holders accept them, but clearance can take longer.

Before you send funds, confirm who the escrow holder is and how they process deposits. After delivery, request a written receipt immediately and keep it with your transaction records.

Wire fraud is a real risk in South Florida. Do not rely on email alone for wiring instructions. Call the title company using a number you already know is legitimate and read the instructions back to confirm. If you have any doubt, consider using a cashier’s check for smaller initial deposits when acceptable to the seller and escrow holder.

Refunds and forfeits: what to expect

Your right to get the deposit back depends on the contract and timing. Common buyer protections that allow a refund when used correctly include:

• Inspection contingency. You can inspect the property during a set period. If you object within the deadline and the parties cannot agree on repairs or credits, you can cancel and recover your deposit as the contract allows.
• Financing contingency. If you cannot obtain the agreed mortgage on time and you follow notice procedures, you can usually cancel and receive your deposit back.
• Appraisal contingency. If the home appraises below the purchase price and you follow the contract’s steps to terminate, you typically recover the deposit unless you waived the contingency.
• Title issues. If the seller cannot cure a title defect by the contract deadline, you may be entitled to cancel and get your deposit back.
• HOA and document review. For condos and HOA communities, timely review of association documents and financials can provide termination rights during the review period.

Risks that can lead to losing your deposit include:

• Default after contingencies expire. If you fail to close for reasons not covered by a contingency, the seller may keep your deposit if the contract allows.
• Missing a deposit deadline. If you do not deliver an initial or additional deposit on time, you can be in default.
• Waiving protections. If you waive inspection or financing and later back out, you increase the chance of forfeiture.
• Improper cancellation. If you do not give written notice by the deadline or do not follow the contract’s steps, you may lose your termination rights.

If there is a dispute over the deposit, the escrow holder must follow the contract. Without a mutual written release, the funds are typically held until the parties agree, a claim process is completed, or a court order directs release. An escrow agent may also file an interpleader action to let a court decide. Disputes can add time and costs, so tracking deadlines and notices carefully is essential.

First‑time buyer checklist and timeline

Before you make an offer

• Get a lender pre‑approval or proof of funds if paying cash.
• Decide on your deposit strategy. Choose a fixed amount or a percentage based on your budget and the competitiveness of the home.
• Identify the escrow holder. Ask your agent which reputable title company will hold funds and how to deliver them.

At offer and right after acceptance

• If you plan to deposit with the offer, have a cashier’s check ready or be prepared to wire immediately.
• If delivery is due after acceptance, calendar the deadline, often within a few business days.
• Deliver on time and request a written receipt that notes the amount, who paid, date received, and the account where funds are held.

During inspections and financing

• Track every contingency deadline in a shared calendar with reminders.
• If you need to cancel under a contingency, follow the contract’s written‑notice rules exactly and keep copies of all communications.
• Coordinate appraisal and loan milestones so you know when protections expire.

Approaching closing

• Verify that your deposit is applied correctly to your closing disclosure.
• Confirm final wire instructions for closing funds by phone with the title company.

If a dispute arises

• Request a full accounting from the escrow agent.
• Review the purchase contract’s dispute clause. Mediation, arbitration, or interpleader may apply.
• In complex situations, consult a Florida real‑estate attorney for guidance on next steps.

Local advice for Broward buyers

• Expect variation by neighborhood. Broward has pockets of high demand where deposits trend higher and timelines move faster.
• Condos and HOAs require document reviews. Build in time to review budgets, rules, and any special assessments.
• Title companies in South Florida are set up for quick electronic wires. Confirm procedures early so you can move fast when your offer is accepted.
• Protect against scams. Always verify wiring instructions by phone using a known number for the escrow holder.
• Lean on local expertise. A Davie‑area agent and a reputable title company will keep you aligned with local customs, realistic deposit amounts, and precise contract deadlines.

Resumen breve en español

• El depósito en garantía muestra su seriedad al comprar y se aplica en el cierre.
• En Davie y Broward, los depósitos comunes son $1,000–$5,000 o cerca de 1% del precio. En mercados competitivos pueden ser mayores.
• Entregue el depósito a la compañía de títulos indicada en el contrato dentro del plazo. Pida un recibo por escrito.
• Si cancela dentro de sus contingencias de inspección, financiamiento o tasación, normalmente recupera el depósito. Si incumple después, podría perderlo.
• Verifique las instrucciones de transferencia por teléfono para evitar fraudes.

Ready to move forward?

If you want to craft a strong offer in Davie, Cooper City, Plantation, or anywhere in Broward, get clear on your deposit strategy before you write. We can help you choose the right amount, time delivery to your contract, and protect your funds through each contingency. Reach out to christian cevallos for local guidance from offer to closing.

FAQs

What is an escrow deposit in Florida?

• It is a good‑faith payment you make when you go under contract, held by a title company, attorney, or brokerage, and applied to your closing if the sale completes.

How much earnest money is typical in Davie and Broward?

• Many entry‑level and mid‑market offers include $1,000–$5,000, or about 1 percent of the price, with 2–3 percent or more in competitive situations.

When do I have to deliver my deposit in Broward?

• Your contract controls, but common practice is with the offer or within a few business days after acceptance, with possible additional installments later.

Can I get my deposit back if financing falls through?

• Usually yes if you have a financing contingency and you follow the contract’s notice and timing rules before the deadline.

Who holds the deposit in Broward County?

• Most often a title or escrow company holds it, sometimes a closing attorney, and in some cases a brokerage’s escrow account if named in the contract.

How do I avoid wire fraud when sending my deposit?

• Verify wiring instructions by phone using a trusted number for the title company, not just email, and request a written receipt after you send funds.

What happens if there is a dispute over the escrow money?

• The escrow holder will keep funds until the parties agree or a legal process decides. Interpleader or other dispute procedures in your contract may apply.