Buy · Making an offer
Earnest Money in Florida: How Much to Put Down and When You Could Lose It
Sending a deposit before you own the house can feel nerve-racking. Know a few deadlines, and your money is well protected.
What it is and who holds it
In Florida contracts it’s called your escrow deposit. It shows the seller you’re serious, and at closing it’s credited toward your purchase. It’s not an extra cost.
The seller never holds it. A neutral escrow agent named in the contract does, usually a title company, attorney or brokerage.
If the deal falls apart, the money isn’t released automatically to anyone. Buyer and seller both sign a release first. If they disagree, it becomes a legal dispute.
How much, and when
There’s no required amount. It’s negotiated, like the price. A bigger deposit tells the seller you’re committed, which helps when there are other offers.
On the Florida Realtors/Florida Bar contracts:
- Initial deposit: with your offer or a set number of days after the contract is effective.
- Additional deposit (optional): often due after the inspection period, once you’re surer. Small up front, bigger later: a stronger offer with less early risk.
Your deadlines at a glance
| Protection | Cancel in time and… | Miss it and… |
|---|---|---|
| Inspection period | AS IS: get your deposit back for any reason | That exit is gone |
| Loan application | Keeps your financing protection on track | Can put that protection at risk |
| Loan approval (financing contingency) | Get your deposit back if the loan isn’t approved | Your financing protection can end |
Days are calendar days, so weekends count. Cancelling means written notice before the deadline, not a phone call or text.
Florida courts enforce these deadlines strictly. In Diaz v. Kosch, buyers who kept negotiating after the AS IS inspection period ended lost that “any reason” exit.
Other protections can apply too, like title problems the seller can’t fix or certain HOA documents. I walk every buyer through the deadlines in their contract.
How people actually lose it
It’s rarely the house. It’s usually:
- Letting the inspection period end while “still negotiating”
- Cancelling by phone or text instead of in writing
- Missing a loan deadline
- Changing your mind after your protections run out
My tips
- Put every deadline in your calendar, with notifications!
- Book inspections right away. Not near the end of the window.
- Need more time? Ask for an extension. Found a deal breaker? Cancel early. Either way, in writing.
- Never wire money based on an email alone. Call your title company at a number you already know.
Frequently asked questions
What if the buyer and seller both claim the deposit?
The escrow agent holds it until both sides sign a release or the dispute is resolved through mediation, arbitration or court. That's legal territory, outside the scope of a real estate license, so you'll want a Florida real estate attorney (and I'm not one).
Sources
Related answers
Cash vs. financed offers in Florida: why sellers care, and how to compete with a loan
Sellers often prefer cash because it's faster and more certain. Here's what a seller is really weighing, and how a financed buyer can write a Florida offer that competes.
Escalation clauses in Florida: when they help and when they backfire
An escalation clause automatically raises your offer to beat competing offers, up to a cap. Here's how Florida's escalation addendum works, the pros and cons, and the mistakes to avoid.
How much should I offer on a house in Florida? Reading comps like an agent does
Start from what similar homes actually sold for, not the list price. Here's how to read comps, adjust for differences, factor in days on market and condition, and land on an offer you feel good about.