Florida Escrow Rules for Sales Associates: Deposit Deadlines, Who Holds the Money, and Conflicting Demands

Short answer: A Florida sales associate who receives an escrow deposit must deliver it to his or her broker no later than the end of the next business day. The broker must then place it in escrow "immediately," which FREC defines as no later than the end of the third business day after receipt. A sales associate may never hold escrow funds in his or her own name. If the broker gets conflicting demands for the deposit, the current Rule 61J2-10.032 (effective May 21, 2024) requires written notice to the Commission within 15 business days of the last demand and starting a settlement procedure within 30 business days of the last demand.

Who may hold a deposit

A sales associate does not hold escrow money. Under s. 475.42(1)(d) of the 2026 Florida Statutes, a sales associate may not collect any money in a real estate brokerage transaction, whether as a commission, deposit, payment, rental, or otherwise, except in the name of the employer and with the express consent of the employer. Section 475.25(1)(k) makes it a violation for a sales associate to fail to immediately place with his or her registered employer any money, deposit, check, or draft entrusted to the sales associate as the employer's agent.

The deposit itself can be held by:

• The broker, in a trust or escrow account with a bank, credit union, or savings and loan association located and doing business in Florida (s. 475.25(1)(k)). The broker must be a signatory on all escrow accounts (Rule 61J2-14.010).
• A title company or an attorney. The licensee who prepared or presented the contract must put the name, address, and telephone number of the title company or attorney on the contract (Rule 61J2-14.008(2)(b)).

The deadlines for getting a deposit into escrow

Saturdays, Sundays and legal holidays are not business days. Receipt by a sales associate or any other representative of the brokerage counts as receipt by the broker, so the broker's three-business-day clock starts when the sales associate gets the check. The verification steps do not apply when the deposit is held by a title company or attorney nominated in writing by the seller or the seller's agent.

No commingling

Escrow money must stay separate from the licensee's own money. Rule 61J2-14.008(2)(a) says no personal funds of any licensee may be deposited or intermingled with escrow funds, except as the rule allows. Under s. 475.25(1)(k) of the 2026 statutes, a broker may keep up to $1,000 of personal or brokerage funds in a sales escrow account and up to $5,000 in a property management escrow account. A broker also has no right to or lien on a deposit except as Rule 61J2-14.011 permits (for example, on the depositor's written agreement), and may not deliver the deposit to the other party before closing unless the depositor directs otherwise (Rule 61J2-14.011).

Conflicting demands and good faith doubt

When the buyer and the seller both claim the deposit, or the broker has a good faith doubt about who is entitled to it, s. 475.25(1)(d)1. requires the licensee to promptly notify the Commission and promptly use one of four settlement procedures. These duties cover property the licensee still maintains in his or her own escrow or trust account:

1. Request that the Commission issue an escrow disbursement order (EDO);
2. With the consent of all parties, submit the matter to arbitration;
3. By interpleader or otherwise, seek adjudication by a court; or
4. With the written consent of all parties, submit the matter to mediation. Mediation must be successfully completed within 90 days following the last demand, or the licensee must promptly use another procedure.

The current Rule 61J2-10.032 sets the clocks:

• 15 business days: written notice to the Commission after the last party's demand (or after the broker first has a good faith doubt).
• 30 business days: institute one of the settlement procedures after the last demand (or the good faith doubt).
• 30 business days: if the broker uses a procedure other than an EDO request, notify the Commission in writing of the procedure used, within 30 business days of the last demand or good faith doubt.
• 30 business days: if the Commission says in writing that no EDO will be issued, institute another procedure and notify the Commission within 30 business days after receiving that notice.
• 10 business days: if the dispute settles or goes to court before an EDO is issued, notify the Commission within 10 business days.

If one party to a failed sale does not answer the broker's inquiry, the broker may send that party a certified Notice (return receipt requested) or an email to the address of record with the DBPR. A failure to respond within seven business days is treated as authorization to release the funds to the other party. If the licensee promptly uses a settlement procedure and abides by the result, no administrative complaint may be filed for failing to account for or deliver the escrowed property (s. 475.25(1)(d)1.).

When the deposit can go back without a settlement procedure

Under s. 475.25(1)(d)1., the licensee may return the deposit to the buyer without notifying the Commission or starting a procedure when a residential condominium buyer delivers written notice of intent to cancel as authorized by s. 718.503, or when the buyer in good faith fails to satisfy the terms of the contract's financing clause. Brokers holding a deposit under a HUD residential sales contract follow that HUD contract instead of the notice and settlement procedures (Rule 61J2-10.032(5)).

On the exam

Escrow rules fall in "Real Estate Brokerage Activities and Procedures," 12% of the exam in the DBPR booklet effective January 2025. Typical questions test the next-business-day and third-business-day deadlines, the 15/30 business-day notice clocks, and which procedures require the parties' consent. Older study material may show earlier versions of these notice rules, so rely on the current rule. Study more in Florida brokerage activities, read transaction broker vs. single agent, or browse all Florida lessons.

Independent exam-prep guide. Not affiliated with the Florida Real Estate Commission, the DBPR or Pearson VUE. Always confirm current requirements with the DBPR.