Buying a home in Rockledge is exciting, and it moves fast. One of the first money decisions you’ll make is your earnest‑money deposit. It signals to the seller that you’re serious, and it can also be at risk if you miss deadlines or waive protections. If you understand how Florida contracts treat earnest money, you can write a stronger offer and protect your cash.
This guide breaks down what earnest money is, how it works in Florida, when it’s refundable, and smart steps for Rockledge buyers. You’ll also get a quick checklist and real‑world scenarios so you know what to expect. Let’s dive in.
What earnest money is
Earnest money, also called an escrow or good‑faith deposit, is money you put down after your offer is accepted to show you intend to close. It gives the seller confidence to take the home off the market while you move through inspections, appraisal, title work, and financing.
If you close, your deposit is credited to your cash to close, such as your down payment or closing costs. If you cancel for a valid reason under the contract, it can be refundable. If you default, the seller may have a right to keep it depending on the contract.
A larger deposit can help your offer stand out, but it also raises your exposure if you remove contingencies too early. The key is to match your deposit to the market and keep protections in place.
How earnest money works in Florida
In Florida, your purchase contract spells out who holds the funds, how much you’ll deposit, and when it’s due. Here’s how it typically works in Brevard County.
Who holds the money
- Title company or closing company. This is very common and often preferred because title/escrow agents follow strict trust‑account rules.
- Listing broker’s escrow account. Licensed real estate brokers can also hold escrow and must follow escrow accounting rules.
Your contract will name the escrow holder and whether the account is interest‑bearing. If interest is earned, the contract can specify who receives it.
When you must deposit
Florida’s widely used Florida Realtors/Florida Bar contracts require buyers to deliver the deposit quickly after the contract becomes effective. Many buyers send funds the same day or within a few business days. Your exact deadline is in the signed contract. Put that date on your calendar and plan ahead so you don’t miss it.
How to pay and document it
- Payment methods often include personal check, certified or cashier’s check, or a wire transfer.
- For wires, always confirm instructions directly with the title company using a known phone number. Do not rely only on emailed instructions.
- Get a written receipt from the escrow holder that shows the amount, date received, payer, and the property/contract reference. Keep copies of your check or wire confirmation as well.
When you can get earnest money back
Whether your deposit is refundable depends on your contract and your timing. Florida contracts include several common contingencies that protect your deposit when used correctly.
Inspection period
- Purpose: Gives you time to inspect the home and either accept the condition, request repairs, or cancel.
- Typical window: Often 7 to 15 days, but your contract controls the exact number.
- Protection: If you cancel within the inspection period and follow the contract’s notice rules, your deposit is typically returned.
Tip: Track the inspection deadline from the effective date of the contract. Deliver any repair requests or cancellation in writing before the period expires.
Financing contingency
- Purpose: Allows time to get mortgage approval.
- Typical window: Often 21 to 30 days to secure a loan commitment, but your contract governs.
- Protection: If your lender denies the loan by the deadline and you give proper written notice on time, your deposit is usually refundable. If you don’t apply in good faith or miss the notice deadline, the seller may claim the funds.
Appraisal contingency
- Purpose: Protects you if the property appraises below the contract price.
- Outcomes: Negotiate a price change, bring extra cash, or cancel within the allowed period. If you cancel on time per the contract, your deposit is generally refunded.
- Note: Some buyers waive the appraisal contingency to strengthen an offer. That raises risk if the appraisal comes in low.
Title and survey review
- Purpose: Gives you the chance to review the title commitment and survey for issues.
- Timing: A short period set in the contract.
- Protection: If you object within the timeline and the seller cannot cure, you can typically cancel and receive your deposit.
Other common protections
- Association document review, lead‑based paint disclosure period where applicable, and sale‑of‑home contingencies may apply depending on the property and your offer.
Waivers and non‑refundable deposits
If you waive a contingency or let a deadline pass without sending the required notice, you increase your risk of losing the deposit if you later cannot close. Some deals also make part of the deposit non‑refundable after certain milestones, such as the end of the inspection period. This only applies if your contract explicitly says so.
Effective date and deadlines
All timelines usually run from the contract’s effective date, which is the date the last party signs or a date specified in the agreement. Confirm this date because every contingency clock starts there.
If there’s a dispute
While most Rockledge transactions close smoothly, disputes can arise. Here’s how escrow and remedies are typically handled in Florida.
Escrow holder duties and disbursement
Brokers and title companies must follow Florida escrow rules and keep client funds separate from operating funds. Escrow is disbursed according to the contract at closing or by mutual, written instruction from buyer and seller if the deal is canceled.
Dispute resolution
Standard Florida contracts include dispute procedures for escrow funds. If buyer and seller do not agree, the contract may call for mediation or arbitration. Either party can also pursue civil remedies. Your agent and the escrow holder will follow the contract’s process to resolve any claim on the deposit.
Seller remedies on buyer default
Many Florida contracts allow the seller to retain the deposit as liquidated damages if the buyer defaults and if the contract includes that clause. Other legal remedies may be available depending on the contract language. Whether a seller can keep the funds depends on what you both signed and on whether you met your obligations and deadlines.
Buyer protections
Your best tools are timely written notices, clear records, and an escrow holder with strong procedures. Keep your receipts and confirmations, and do not miss any contingency dates.
Rockledge expectations and smart strategies
Deposit amounts vary by neighborhood, price tier, and competition. In many markets, buyers often put down about 1 to 3 percent of the price, with higher deposits in more competitive situations. In Rockledge and the wider Space Coast, the right number depends on current demand for similar homes. Ask your agent to check recent offers in your price range so your deposit feels solid without exposing more cash than needed.
Make a competitive offer without extra risk
- Choose a meaningful deposit that fits the price point. On lower‑priced homes, that may be a few thousand dollars. On higher‑priced homes, it is often a small percentage.
- Keep key contingencies in place, like inspection, financing, and appraisal, unless you fully understand the risk of removing them.
- Pair your deposit with a clean offer: reasonable closing date, a strong pre‑approval letter, and prompt inspection scheduling.
- Use a reputable title company named in your contract as the escrow holder.
A quick timeline for Rockledge buyers
- Day 0: Offer accepted and contract effective. Calendar all contingency deadlines.
- Within the contract’s deposit window: Deliver your earnest money to the named escrow holder and get a receipt.
- Inspection period: Schedule inspections immediately and decide to proceed, request repairs, or cancel before the deadline.
- Financing period: Work closely with your lender to secure loan approval within the set days.
- Appraisal: Coordinate with your lender so the appraisal is completed early enough to act on results.
- Title and survey: Review the title commitment and survey and raise any objections within your contract period.
- Clear to close: Final walk‑through, closing disclosure review, and closing day.
Safety tips for handling funds
- Confirm wire instructions by phone using a trusted number you independently verify.
- Keep copies of checks, wire confirmations, and the escrow receipt.
- Make sure your contract lists the full legal name of the escrow holder and account type.
Checklist: protect your deposit
- Confirm the effective date and every deadline in writing.
- Deliver your deposit before the contract’s due date and obtain a receipt.
- Calendar inspection, appraisal, financing, title, and association review periods.
- Send all notices in writing as the contract requires.
- Do not waive contingencies unless you accept the risk.
- Keep all paperwork, emails, and confirmations organized in one folder.
- Call the title company to verify any wire information.
Real‑world scenarios you might see
- Scenario A: You cancel within the inspection period and send proper notice. Your deposit is typically returned.
- Scenario B: Your lender denies the loan before the financing deadline and you notify the seller in time. Your deposit is typically refundable.
- Scenario C: You waive appraisal and financing protections, then cannot close. The seller may be able to keep your deposit under the contract’s remedies.
- Scenario D: The seller refuses to close without a valid reason. You may be entitled to the return of your deposit and other remedies under the contract.
Ready to buy in Rockledge?
If you want a stronger offer and a safer path to closing, you need a local plan for deposit amount, timelines, and contingencies. Your Houseman Real Estate pairs Space Coast market knowledge with hands‑on guidance so you can move with confidence. If you’re also planning a sale, get your free home valuation from the House Man.
FAQs
What is earnest money on a Florida home purchase?
- It’s a good‑faith deposit you make after your offer is accepted, held in escrow and credited to your closing costs or down payment if you close.
Who holds earnest money in a Rockledge sale?
- Typically a title or closing company named in the contract, or the listing broker’s escrow account, both following Florida escrow rules.
When is earnest money refundable in Florida?
- When you cancel within a contract contingency period, such as inspection, financing, appraisal, or title, and deliver proper written notice on time.
How much earnest money should I offer in Rockledge?
- It depends on price and competition. Many buyers use a low single‑digit percent of the price; your agent can advise based on recent local offers.
What proof should I get after I pay the deposit?
- Ask the escrow holder for a written receipt with the amount, date, payer, and property, and save a copy of your check or wire confirmation.
What happens if there’s a dispute over the deposit?
- The escrow holder follows the contract. If buyer and seller do not agree, the contract may require mediation or arbitration, or parties can pursue legal remedies.
