Is earnest money refundable in Florida?

Yes, when you terminate within a valid contingency such as the inspection, financing, or appraisal period. Terminating after those deadlines usually puts the deposit at risk.

How much earnest money is typical in Davie?

Commonly 1 to 5 percent of the price. Competitive offers often use the higher end to signal seriousness to the seller.

Where does earnest money go?

Into an escrow account held by a title company, attorney, or brokerage — never directly to the seller — and it is credited to you at closing.

What happens to earnest money if the appraisal is low?

If your contract contains an appraisal contingency and you terminate within it, the deposit is returned. Without that contingency, you may be obligated to cover the difference.

What Is Earnest Money in a Davie, FL Home Purchase?

Quick Answer

Earnest money is a good-faith deposit delivered to an escrow holder shortly after contract acceptance, usually within three business days. It is credited toward your down payment and closing costs at closing, and it is refundable if you terminate within a contingency such as the inspection period, financing, or appraisal.

How much to put down

There is no fixed rule. In Davie, deposits commonly run from 1 to 5 percent of the purchase price, with larger deposits used to strengthen offers in competitive situations.

A larger deposit signals capability, but only commit what you would be comfortable placing at risk if you breached the contract outside your contingencies.

Delivery deadlines are strict

The Florida contract sets a delivery deadline, commonly three business days after the effective date. Late delivery is a breach and can give the seller the right to cancel.

Wire early, confirm receipt in writing, and keep the confirmation.

Who holds the money

Typically a title company, an attorney's trust account, or a brokerage escrow account. Whoever holds it is bound by escrow rules and cannot simply release it to one party on request.

This is protection for both sides, and it is why the release process takes signatures rather than phone calls.

When it is refundable

During the inspection period under an as-is contract, you may terminate for any reason and receive the deposit back. Financing and appraisal contingencies provide similar exits within their own deadlines.

After contingencies expire, walking away generally puts the deposit at risk, which is exactly the point of the structure.

When disputes happen

If both parties claim the deposit, the escrow agent cannot pick a side. The contract provides a resolution path, typically involving written demands, a waiting period, and then mediation, interpleader, or arbitration depending on the form used.

Disputes are slow and expensive relative to the amounts involved, which is one more reason to respect deadlines rather than negotiate after them.

How it interacts with your cash to close

The deposit is not an extra cost. It is credited on the settlement statement, reducing the amount you wire at closing. Good realtors Davie, FL buyers work with will show you both numbers so the closing wire is never a surprise.

For the mechanics of the escrow account itself, continue with what an escrow deposit is.

What Is Earnest Money?