Earnest Money Dispute Resolution

Earnest Money Dispute Resolution in Florida

Earnest money dispute resolution in Florida follows a structured process defined by both the purchase contract and Florida statutes. When a real estate transaction fails to close and the buyer and seller disagree about who is entitled to the earnest money deposit, the escrow holder must hold the funds until the dispute is resolved through one of several legal channels.

Step-by-Step Resolution Process

• Step 1: The disputing parties submit competing written demands to the escrow holder
• Step 2: The escrow holder notifies both parties that the deposit is in dispute and cannot be released
• Step 3: If the escrow holder is a broker, they notify FREC within 15 business days under Section 475.25(1)(d)
• Step 4: The parties attempt mediation (required under FAR/BAR contracts)
• Step 5: If mediation fails, the escrow holder files an interpleader action or requests a FREC disbursement order
• Step 6: A judge or FREC determines who receives the deposit

Key Florida Statutes

Several Florida laws directly affect earnest money dispute resolution:

• Section 475.25(1)(d): Broker notification and deposit handling requirements
• Section 475.25(1)(k): Broker escrow account violations and penalties
• Chapter 44, Florida Statutes: Mediation procedures and requirements
• Florida Rules of Civil Procedure, Rule 1.240: Interpleader action procedures

Related Terms

• Earnest Money — The deposit at the center of the dispute
• Escrow Agreement — Governs escrow holder obligations during disputes
• Liquidated Damages — The contractual cap on deposit remedies

Barnes Walker Earnest Money Attorneys

Barnes Walker's real estate litigators handle earnest money disputes at every stage, from demand letters and mediation through FREC proceedings and circuit court litigation. Request a legal inquiry for assistance.

Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC